Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (September 2018)
90 slides from Prudential Financial's investor day presentation, Sep 26, 2018
Slide 1: Prudential Financial, Inc. 2018 Tokyo Investor Day
Prudential Financial, Inc. 2018 Tokyo Investor Day Exhibit 99.1
Slide 2: Investor Relations introduction
Prudential Financial, Inc. 2018 Tokyo Investor Day Darin Arita Senior Vice President Investor Relations
Slide 3: Forward-Looking Statements and Non-GAAP Measure
Forward-Looking Statements and Non-GAAP Measure Tokyo Investor Day 9.27.2018 Certain of the statements included in this presentation, including those related to our strategy, prospects, and returns constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Ref
Slide 4: Reconciliations Between Adjusted Operating Income and the Comparable GAAP Measure
Reconciliations Between Adjusted Operating Income and the Comparable GAAP Measure Tokyo Investor Day 9.27.2018 2
Slide 5: PGIM Japan Disclosures
PGIM Japan Disclosures © 2018 Prudential Financial, Inc. (PFI) and its related entities. QMA, Quantitative Management Associates, Jennison Associates, Jennison, PGIM Real Estate, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, regist
Slide 6: Notes to Disclosure in Japan
Notes to Disclosure in Japan Tokyo Investor Day 9.27.2018 Registered Corporate Name: PGIM Japan Co., Ltd. Location: The Prudential Tower, 2-13-10, Nagatacho, Chiyoda-ku, Tokyo Chief Executive Officer: Yasuhisa Nitta Date of Establishment: April 19, 2006 Major Shareholders: Prudential International I
Slide 7: International Insurance Overview
International Insurance Overview Charles F. Lowrey Executive Vice President and Chief Operating Officer International Businesses
Slide 8: Key Messages
Key Messages Differentiated business model with superior execution Investing strategically to enhance long-term prospects Sustained growth with strong returns and steady capital generation Tokyo Investor Day 9.27.2018 2
Slide 9: Consistent International Strategy a Key to Success
Consistent International Strategy a Key to Success Product Development to Meet Customer Needs Building Digital, Mobile, and Data Analytics Capabilities Complementing Organic Growth with M&A Superior Execution Distribution Expansion in Proprietary and Third-Party Channels Tokyo Investor Day 9.27.2018
Slide 10: Sustained Growth With Strong Returns and Steady Capital Generation
Tokyo Investor Day 9.27.2018 Sustained Growth With Strong Returns and Steady Capital Generation Represents compound annual growth rate for Face Amount In Force and Constant Currency Adjusted Operating Income from 2013-2017. Translated to U.S. dollars, including Japanese yen 112 per U.S. dollar and K
Slide 11: Investing Strategically To Enhance Long-Term Prospects
Investing Strategically To Enhance Long-Term Prospects Near-Term Select developed markets Significant wealth Large mature market Japan Korea Taiwan Medium-Term Emerging markets Rising middle class Low insurance penetration Brazil Chile Argentina Indonesia India Long-Term Seed investments Attractive
Slide 12: Japan Remains a Highly Attractive Market
Japan Remains a Highly Attractive Market Tokyo Investor Day 9.27.2018 Translated to U.S. dollars at uniform currency exchange rate (Japanese yen 111 per U.S. dollar). Source: Bank of Japan (data as of December 2017). Translated to U.S. dollars at uniform currency exchange rate (Japanese yen 111 per
Slide 13: Select Emerging Growth Markets
Select Emerging Growth Markets Market Share By AUM (As of May 2018) Source: SPS local regulatory authority Chile Brazil Life Planner business modeled on successful Japanese operation Expanding third-party distribution Strong sales productivity and persistency Strong growth of in force despite econom
Slide 14: Strategic Investments In Other Growth Markets
Prudent evaluation of strategic investment growth potential and prospective returns with selective ownership approach Long-Term Medium-Term Africa Acquired significant minority interest in Enterprise Group Limited in August 2017 #1 life insurer in Ghana China 50/50 joint venture with Fosun Group in
Slide 15: Key Messages
Key Messages Differentiated business model with superior execution Investing strategically to enhance long-term prospects Sustained growth with strong returns and steady capital generation Tokyo Investor Day 9.27.2018 9
Slide 16: Japanese Businesses Overview
Japanese Businesses Overview Mitsuo Kurashige Chairman and Chief Executive Officer Prudential Holdings of Japan, Inc.
Slide 17: Key Messages
Key Messages 2 Tokyo Investor Day 9.27.2018 Customer-focused, differentiated distribution models result in attractive returns Needs-based selling and quality people drive leading market position Adapting to market changes through multiple growth opportunities
Slide 18: Japanese Insurance Market Remains Highly Attractive
Japanese Insurance Market Remains Highly Attractive Household Wealth Household sector wealth ¥1,880 trillion ($17 trillion)(2) Investable Asset Pool ¥961 trillion ($9 trillion) household pool of currency and deposits is among the world’s largest(2) Retirement Market Expansion driven by aging populat
Slide 19: Our Customer Focus Differentiates Us in Japan
Our Customer Focus Differentiates Us in Japan - Quality People, Quality Products, Quality Service Tokyo Investor Day 9.27.2018 4 Mission Our mission is to provide the highest quality service and to deliver to each and every customer financial security and peace of mind Vision We strive to revolution
Slide 20: Targeted Distribution Serving Diverse Customer Segments
Targeted Distribution Serving Diverse Customer Segments in the Japanese Market Affluent and mass affluent customers Business and professional market Broad middle income customers Affinity group relationships Life Planners Life Consultants Bank Channel Independent Agency Channel Customers with invest
Slide 21: Needs-Based Selling Opportunities Over Customer's Life Cycle
Needs-Based Selling Opportunities Over Customer’s Life Cycle Note: Specific needs and solutions will vary by customer. Tokyo Investor Day 9.27.2018 Age 30's 40's 50's 60's 70's Client Life Cycle Financial Risk Protection Needs Prudential Solutions Young household, early professional career Mid-caree
Slide 22: Japan Demographic Change Drives Growth Opportunity
Japan Demographic Change Drives Growth Opportunity Source: National Institute of Population and Social Security Research, "Population Projections for Japan: 2016 to 2065," Medium-fertility (medium-mortality) projection. Japan Demographics(1) We have an experienced agent force poised to help customer
Slide 23: Quality People Leads to Strong Productivity
LIFE PLANNER POJ Industry leading Million Dollar Round Table (“MDRT”) memberships Prudential of Japan has had the highest number of MDRT members in Japan for 21 consecutive years(1) Strong productivity sustains growth Quality People Leads to Strong Productivity Source: Million Dollar Round Table Ass
Slide 24: Leading Position in Attractive Japan Life Insurance Market
Leading Position in Attractive Japan Life Insurance Market Source: Life Insurance Association of Japan (LIAJ). Twelve months ended March 31, 2018. Source: Life Insurance Association of Japan (LIAJ). Market share data is based on Prudential estimates developed from publicly available data of Japanese
Slide 25: Focus on Death Protection Products Contributes to Earnings Stability
Focus on Death Protection Products Contributes to Earnings Stability Japan only. Foreign denominated activity translated to U.S. dollars at uniform exchange rate (Japanese yen 111 per U.S. dollar). U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars. For t
Slide 26: History of Sustainable Growth in Japan
History of Sustainable Growth in Japan Face Amount of Individual Policies In Force(1) As of December 31st for each period presented. Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented (Japanese yen 111 per U.S. dollar). ($ in billions) Tokyo I
Slide 27: Adapting to Changing Market In Japan
Adapting to Changing Market In Japan Introduction of new products and repricing Shift to U.S. dollar products Grow retirement solutions Focus on estate planning Expand and diversify captive distribution Selective growth in third-party channels Focus on digital, data, and mobile solutions elective gr
Slide 28: Growth In U.S. Dollar Recurring Sales Driven By Customer Needs
(3) Growth In U.S. Dollar Recurring Sales Driven By Customer Needs Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented (Japanese yen 111 per U.S. dollar). For the year ended December 31, 2013 and December 31, 2017 respectively. Other represents
Slide 29: Building Digital and Mobile Capabilities
Building Digital and Mobile Capabilities Initiatives to enhance customer experience and support growth include: Deploy digital solutions to achieve customer experience excellence Digital empowerment that helps maximize sales activities and post-issue services Digitize back-end processes and platform
Slide 30: Key Messages
Key Messages Tokyo Investor Day 9.27.2018 Customer-focused, differentiated distribution models results in attractive returns Needs-based selling and quality people drive leading market position Adapting to market changes through multiple growth opportunities 15
Slide 31: Japanese Life Planner Business
Japanese Life Planner Business Motofusa Hamada President and Chief Executive Officer Prudential of Japan
Slide 32: Key Messages
Key Messages Growing Life Planner model, driven primarily by high quality field management, reinforces sustainable competitive advantage Lifetime client relationships driven by recognized quality service Tokyo Investor Day 9.27.2018 Adapting products to market changes and customer needs supports gro
Slide 33: Life Planner – A Selective, High Quality Sales Force
Life Planner – A Selective, High Quality Sales Force Selection Process College education Successful track record, but no prior life insurance sales experience Values and beliefs of a trusted advisor ~2 out of 100 candidates hired Training Program Structured training program First month - Dedicated t
Slide 34: Superior Returns & Steady Growth
Superior Returns & Steady Growth Quality People Quality Products Quality Service Sustainable Advantage Driven by Distribution Tokyo Investor Day 9.27.2018 Life Planners (“LP”) providing financial security over customers’ lifetime drives our beneficial cycle Annualized new business premiums (AP) per
Slide 35: Superior Distribution Model with Steady Growth
Strong Policy Count Productivity(2): 6+ Superior Distribution Model with Steady Growth Experienced Agent Profile(3) Number of Life Planners with 15+ years experience Average Number of Clients Average Relationship Length 985 444 10.5 years As of December 31st for each period presented. Number of poli
Slide 36: Recognized Leader in Quality Service Drives High Persistency
Recognized Leader in Quality Service Drives High Persistency Life Support Insurance segment 2014 and All segment 2015 - 2018 of J.D. Power Asia Pacific Japan Life Insurance Contract Customer Satisfaction StudiesSM. Contract Customer Satisfaction Study based on life insurance policyholders who purcha
Slide 37: Quality Products Meeting Financial Security Needs Over a Lifetime
Quality Products Meeting Financial Security Needs Over a Lifetime Age 30’s – 70’s+ Death Protection Retirement A&H / Savings Sophisticated Estate Planning Business Succession Family Distribution of Inheritances Medical Subsequent Sale Opportunities Tokyo Investor Day 9.27.2018 For Illustrative Purpo
Slide 38: Adapting Products to Market Changes and Customer Needs Supports Growth
Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented (Japanese yen 111 per U.S. dollar). Other represents single premium and premium denominated in other than U.S. dollar or Japanese yen. Tokyo Investor Day 9.27.2018 Adapting Products to Market
Slide 39: In Force Can Grow Without Increase in Sales
In Force Can Grow Without Increase in Sales Assumed Annual Sales Level 50% below 2017 level 40% below 2017 level At 2017 level 20% above 2017 level Prudential of Japan In Force Face Amount ($ billions) Tokyo Investor Day 9.27.2018 Pro Forma 12/31/2022(1) In force maintained even if 2017 sales level
Slide 40: Key Messages
Key Messages Growing Life Planner model, driven primarily by high quality field management, reinforces sustainable competitive advantage Lifetime client relationships driven by recognized quality service Tokyo Investor Day 9.27.2018 Adapting products to market changes and customer needs supports gro
Slide 41: Life Consultant and Independent Agency Channel
Life Consultant and Independent Agency Channel Kazuhiro Yamauchi President and Chief Executive Officer Gibraltar Life
Slide 42: Key Messages
Key Messages Broad distribution through productive Life Consultants and growing Independent Agencies Adapting products to market changes and customer needs supports growth Tokyo Investor Day 9.27.2018 Distinctive affinity relationship with Japanese Teachers Association 2
Slide 43: Gibraltar Life & Other Overview
Operating Segment Entity Gibraltar Life & Other Life Consultant Gibraltar Life & Other Overview Bank Channel Gibraltar Life PGFL(1) Tokyo Investor Day 9.27.2018 Independent Agency 15% Independent Agency Distribution Channel 2017 Annualized New Business Premiums $1.6 billion(2) Prudential Gibraltar F
Slide 44: Customer Segment and Diversified Distribution Channels
Customer Segment Broad middle income market Affinity groups Mass affluent market Business and professional-market Diversified Distribution Channels Independent Agency Life Consultant Tokyo Investor Day 9.27.2018 Needs-based selling focusing on death protection with growing interest in retirement and
Slide 45: Life Consultant Distribution - Broad Market Coverage
Life Consultant Distribution - Broad Market Coverage with Access to Nearly All of Japanese Population 82 branch offices supporting Life Consultants(1) Branch offices established in substantially all prefectures Prudential training supports emphasis on death protection products and needs-based sellin
Slide 46: Life Consultants – Stable Productivity Trending Higher
Life Consultants – Stable Productivity Trending Higher Tokyo Investor Day 9.27.2018 Continued focus on maintaining high quality Productivity has consistently exceeded industry average and has trended higher with proven training programs and adherence to high recruiting and retention standards Number
Slide 47: Serving Teachers Market – Largest Affinity Group
Serving Teachers Market – Largest Affinity Group Approximately Life Consultants Approximately Public schools nationwide(2) As of December 31, 2017. Source: Japan Ministry of Education, Culture, Sports, Science and Technology, and Japanese Educational Mutual Aid Association of Welfare Foundation as o
Slide 48: Teachers Association: Perennial Sales Opportunities
Teachers Association: Perennial Sales Opportunities Approximate numbers as of June 30, 2018. Active Market Retiree Market Protection products sold to new and active teachers Retirement products for lump sum recipients Tokyo Investor Day 9.27.2018 8
Slide 49: Teachers Association Remains Significant Source of Business
More than one-quarter of Life Consultant channel new business is derived from Teachers Association Teachers Association Remains Significant Source of Business Foreign denominated activity translated to U.S. dollars at uniform exchange rates (Japanese yen 111 per U.S. dollar). Life Consultant Annuali
Slide 50: Gibraltar Independent Agency Channel Market Overview
Market(1) Increasing independent agency customer base Most customers in their 30s and 40s More selective customers Gibraltar Independent Agency Channel Expanding sales base mainly in urban area 52 sales offices serving approximately 2,600 independent agencies USD recurring premium products for mass
Slide 51: Growing Independent Agency Channel - A Differentiated Strategy
MR: Marketing Representatives providing face-to-face support for agencies, mainly in metropolitan areas. SR: Sales Representatives providing support to agencies mainly in remote areas. (1) Growing Independent Agency Channel - A Differentiated Strategy Key strategies Focus on “Quality”, not just top-
Slide 52: Adapting Products to Market Changes and Customer Needs Supports Growth
Adapting Products to Market Changes and Customer Needs Supports Growth Strong Growth in U.S. Dollar Recurring Premium Sales Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented (Japanese yen 111 per U.S. dollar). Other represents single premium
Slide 53: In Force Can Grow Without Increase in Sales
Excludes Bank channel. Assuming same sales mix, currency exchange rates for non-yen business, and persistency for year ended December 31, 2017. Represents impact of sales levels for years subsequent to 2017, held constant through 2022. All indicated levels are in relation to actual 2017 sales, upon
Slide 54: Key Messages
Key Messages Broad distribution through productive Life Consultants and growing Independent Agencies Adapting products to market changes and customer needs supports growth Tokyo Investor Day 9.27.2018 Distinctive affinity relationship with Japanese Teachers Association 14
Slide 55: Bank Channel
Bank Channel Takeshi Soeda President and Chief Executive Officer Prudential Gibraltar Financial Life
Slide 56: Key Messages
Key Messages Differentiated high quality distribution in bank channel market Strengthening bank relationships provides additional sales opportunities Tokyo Investor Day 9.27.2018 Adapting products to market changes and customer needs 2
Slide 57: Gibraltar Life & Other Overview
Operating Segment Entity Gibraltar Life & Other Life Consultant Gibraltar Life & Other Overview Bank Channel Gibraltar Life PGFL(1) Tokyo Investor Day 9.27.2018 Independent Agency 15% Independent Agency Distribution Channel 2017 Annualized New Business Premiums $1.6 billion(2) Prudential Gibraltar F
Slide 58: Significant Financial Assets in Bank Channel Market
Significant Financial Assets in Bank Channel Market Attractive sales opportunity driven by: Substantial concentration of wealth among Banks’ primary customers age 50 years and older Primary customers expected to increase as a percentage of the population(2) Tokyo Investor Day 9.27.2018 Banks’ Primar
Slide 59: Bank Channel Relationships Provide Broad National Coverage
Bank Channel Relationships Provide Broad National Coverage Tokyo Investor Day 9.27.2018 Prudential Distribution Partners(1)(2) Deposits, etc(3) （Trillion USD） Mega Bank(4) 4 3.5 Major Trust Bank 3 1.3 Regional Bank, etc. 66 1.8 Brokerage Firm 2 1.4 Total 75 8.0 As of December 31, 2017. The number of
Slide 60: Differentiated Sales Support
Differentiated Sales Support Tokyo Investor Day 9.27.2018 Experienced Life Planners, “seconded” as Insurance Consultants to partner with certain banks, bring strength of Prudential’s distribution model to bank channel Wholesalers provide sales support to bank employees As of December 31st for all pe
Slide 61: Strengthening Relationships Increases Opportunities For Recurring Premium Product Sales
Tokyo Investor Day 9.27.2018 Strengthening Relationships Increases Opportunities For Recurring Premium Product Sales ~50% Increase ~20% Increase Bank Partners Adopting Recurring Premium Products Average Number of Recurring Premium Products Adopted per Bank 7
Slide 62: Adapting Products To Market Changes And Customer Needs
Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented (Japanese yen 111 per U.S. dollar). Other represents single premium and premium denominated in other than U.S. dollar or Japanese yen. Tokyo Investor Day 9.27.2018 Adapting Products To Market
Slide 63: Key Messages
Key Messages Differentiated high quality distribution in bank channel market Strengthening bank relationships provides additional sales opportunities Tokyo Investor Day 9.27.2018 Adapting products to market changes and customer needs 9
Slide 64: PGIM Japan
PGIM Japan Yasuhisa Nitta President and Chief Executive Officer PGIM Japan Co., Ltd.
Slide 65: Key Messages
Key Messages Well positioned in an attractive market Generating significant growth Long-term focus to fuel sustainable growth Tokyo Investor Day 9.27.2018 2
Slide 66: PGIM Overview
PGIM Overview Tokyo Investor Day 9.27.2018 Top 10 global asset manager1 with $1.2 tn in Assets Under Management2 Diversified active product suite across public and private asset classes 1,110+ investment professionals 36 offices in 15 countries >80% of fees from third-party clients >50% of fees from
Slide 67: PGIM Japan is a Significant Contributor to PGIM
PGIM Japan is a Significant Contributor to PGIM Tokyo Investor Day 9.27.2018 PGIM Japan Contribution to Total PGIM Assets Under Management PGIM Japan as of June 30, 2018, using the exchange rate of 111 yen per U.S. dollar. Distribution Engine for PGIM Businesses As of June 2018 $194 billion 1 4
Slide 68: Large Growth Opportunity in Japan
Large Growth Opportunity in Japan Tokyo Investor Day 9.27.2018 The Investment Trusts Association, Japan and The Japan Investment Advisers Association. The data is a combination of assets of privately placed investment trusts and those of discretionary managed accounts for Japanese institutional inve
Slide 69: PGIM Investment Performance
Past performance is not a guarantee or reliable indicator of future results. Performance shown represents each individual AUMs respective fund or strategies benchmark. 1) Represents PGIM’s benchmarked AUM. 89% of total third-party AUM is benchmarked over 3 years, 88% over 5 years, and 75% over 10 ye
Slide 70: Expanding Product Breadth and Client Coverage in Japan
Expanding Product Breadth and Client Coverage in Japan Tokyo Investor Day 9.27.2018 Product and client diversification * Strategies offered to unaffiliated third-party investors For illustrative purposes only. 7
Slide 71: Japan Growth Driven by Financial Institutions and Pensions
Japan Growth Driven by Financial Institutions and Pensions Tokyo Investor Day 9.27.2018 PGIM Japan third-party AUM has grown significantly1 26% annual growth over 8 years Data as of June 30, 2018. The data uses an exchange rate of 111 yen per U.S dollar. Note: AUM for discretionally managed accounts
Slide 72: PGIM Japan Strategy
PGIM Japan Strategy Tokyo Investor Day 9.27.2018 Diversify client base Leverage our multi-asset capabilities Invest to drive future growth 9
Slide 73: PGIM Japan – Well Positioned to Expand Client Base
PGIM Japan – Well Positioned to Expand Client Base Tokyo Investor Day 9.27.2018 FINANCIAL INSTITUTIONS PRIVATE PENSIONS PUBLIC PENSIONS RETAIL DISTRIBUTORS Managing assets for 5 out of 7 largest public pension plan sponsors GPIF mandate in 2012 Solid track record for existing mandates Strong relatio
Slide 74: PGIM Japan – Leveraging our Multi-Asset Capabilities
PGIM Japan – Leveraging our Multi-Asset Capabilities Tokyo Investor Day 9.27.2018 PGIM’s strengths are well-suited to Japanese clients’ needs FINANCIAL INSTITUTIONS PRIVATE PENSIONS PUBLIC PENSIONS RETAIL DISTRIBUTORS PGIM positions of strength Top 3 Real Estate Manager Worldwide2 Private Credit Pro
Slide 75: PGIM Japan – Investing in Brand and Client Service Resources
PGIM Japan – Investing in Brand and Client Service Resources to Drive Future Growth Tokyo Investor Day 9.27.2018 Branding Sales/Client Relations Including sales, client service, marketing, on-boarding & product, client reporting, assistants and product specialists. From August 1, 2013 to August 1, 2
Slide 76: Key Messages
Key Messages Well positioned in an attractive market Generating significant growth Long-term focus to fuel sustainable growth Tokyo Investor Day 9.27.2018 13
Slide 77: Appendix: Footnotes for PGIM Overview
Appendix: Footnotes for PGIM Overview Tokyo Investor Day 9.27.2018 1) Pensions & Investments Top Money Manager’s list, May 28, 2018; based on Prudential Financial total worldwide assets under management as of December 31, 2017. 2) Worldwide AUM include assets managed by Prudential’s Asset Management
Slide 78: Prudential International Insurance Financial Overview
Prudential International Insurance Financial Overview Rob Falzon Executive Vice President and Chief Financial Officer Prudential Financial, Inc.
Slide 79: Key Messages
Key Messages Impacts from currency and interest rate headwinds are subsiding Tokyo Investor Day 9.27.2018 Sustained growth with strong returns and attractive risk profile Strong capital generation and redeployment 2
Slide 80: International Generates Mid-Single Digit Core Growth
Tokyo Investor Day 9.27.2018 ($ in billions) Yen Plan Rate 80 112 Avg. 30 Year Japanese Government Bond Rate 1.70% 0.84% International Generates Mid-Single Digit Core Growth 5% Annual Growth from 2013 to 2017 Interest Rates 3
Slide 81: International Generates Mid-Teens Returns
International Generates Mid-Teens Returns Adjusted operating return on equity based on reported annualized after-tax AOI using the effective tax rate applicable to Prudential’s overall AOI and average attributed equity excluding accumulated other comprehensive income and adjusted to remove the impac
Slide 82: Actively Managing Risk
Actively Managing Risk Tokyo Investor Day 9.27.2018 Financial Discipline & Risk Mgmt. Risks Mitigants Disciplined ALM focus with diversified high quality investment portfolio Active product management maintains risk profile and profitable growth Robust currency hedging protects near-term and long-te
Slide 83: Active Product Management Maintains Risk Profile and Profitable Growth
Active Product Management Maintains Risk Profile and Profitable Growth Tokyo Investor Day 9.27.2018 For the six month period ended June 30, 2018. Market/Customer Change Management Action Result Yen-product profitability challenged Suspend low return products Yen single pay product represents <1%(1)
Slide 84: Disciplined ALM Benefits From Moderating Impact of Low Interest Rates
Tokyo Investor Day 9.27.2018 Reflects USD and JPY product blocks in the Gibraltar and POJ Businesses. “USD” and “JPY” are indicative of the currency of the products that the assets are supporting. Yield based on rolling four quarter average. Fixed Income and Mortgage portfolio yields reflect future
Slide 85: Diversified High Quality Investment Portfolio
Tokyo Investor Day 9.27.2018 Portfolio Asset Class IG Rating Distribution(2) Japan Investment Portfolio(1) (3) Government and Agencies account for about half of ”A” rated securities ~95% Investment Grade (IG) Fixed Income As of June 30, 2018; Includes fixed maturities, commercial mortgages and other
Slide 86: Robust Currency Hedging Protects Near-term and Long-term Value
Tokyo Investor Day 9.27.2018 U.S. dollar assets include dual currency and synthetic dual currency investments held by our yen-based entities in the amount of $0.6 billion. Also includes derivatives in the amount of $1.4 billion to maintain the aggregate short yen position at the target level. ($ in
Slide 87: International is Well Capitalized Under Multiple Lenses
Capital evaluation through multiple internal lenses, including an economic view, enables navigation of evolving regulatory frameworks Enterprise Capital Protection Framework to withstand extreme market stresses Solvency Margin Ratios remain strong Prudential Holdings Japan(2) POJ Gibraltar Life Solv
Slide 88: Strong Capital Generation And Redeployment
Strong Capital Generation And Redeployment Tokyo Investor Day 9.27.2018 ($ in billions) Stable redeployment of 60+% of International after-tax AOI through various means 11 Reflects net capital redeployed, including the impact from dividends, debt repayment, affiliated lending, affiliated derivatives
Slide 89: International Business Has Similar Characteristics To Highly Valued Protection-Focused Companies
Our International Business Has Similar Characteristics To Other Highly Valued Protection-Focused Companies Tokyo Investor Day 9.27.2018 Sustainable differentiated business model Stable earnings with mid-single digit core growth Attractive mid-teens unlevered returns Strong capital position under mul
Slide 90: Key Messages
Key Messages Impacts from currency and interest rate headwinds are subsiding Tokyo Investor Day 9.27.2018 Sustained growth with strong returns and attractive risk profile Strong capital generation and redeployment 13