Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Presentation (December 2014)
14 slides from Prudential Financial's investor presentation, Dec 11, 2014
Slide 1: Prudential Financial, Inc. 2015 Financial Outlook Conference Call Presentation
Exhibit 99.1 PRUDENTIAL FINANCIAL, INC. 2015 FINANCIAL OUTLOOK CONFERENCE CALL PRESENTATION DECEMBER 11, 2014
Slide 2: Delivering Superior Value
DELIVERING SUPERIOR VALUE Superior Value Proposition for Customers, Creditors, and Top-Tier Investors ROE Strong Core Businesses Financial Strength 2015 Financial Outlook Conference Call 2
Slide 3: Return on Equity
RETURN ON EQUITY(1) 16.2% 15.2% 11.9% 11.8% Long-term 10.1% 10.2% ROE objective of 13% to 14% over cycle 2009 2010 2011 2012 2013 YTD 9/30/14 2015 Annualized 1) ROE based on after-tax adjusted operating income (AOI) excluding market driven and discrete items as disclosed in company earnings releases
Slide 4: Tailwinds and Headwinds
TAILWINDS AND HEADWINDS 2014 2015 Tailwinds Tailwinds Equity markets Greater financial flexibility Strong general account non-coupon – Business momentum driving solid investment income capital generation Favorable mortality experience – Enhanced by Closed Block Favorable case experience in restructu
Slide 5: 2015 Outlook
2015 OUTLOOK Key Assumptions & Considerations: S&P 500 ends 2014 at 2,020 and grows 6% annually; ending 2015 at 2,144 U.S. Dollar @ 91 Yen and 1,120 Won Interest rates based on averaging of forward yield curves – 10 Year U.S. Treasury rises to 2.97% by end of 2015 Effective Tax Rate ~27% Capital dep
Slide 6: 2015 Earnings Guidance
2015 EARNINGS GUIDANCE Market Core Capital Factors Growth Deployment 2015 EPS 2014 Guidance (3) 9 Months Market Driven Annualized $9.60 -$10.10 and Discrete Items (1) Run Rate $9.25 3Q 2014 Adjustment YTD Results 3Q 2014 Items (2) After-Tax YTD Baseline AOI Basis Results $7.09 $7.51 1) As disclosed
Slide 7: Equity Market and Interest Rate Sensitivity of Earnings
EQUITY MARKET AND INTEREST RATE SENSITIVITY OF EARNINGS Equity Market Interest Rate Impact Impact +/-10% +/-100 bps (1) Estimated Impact to Earnings Per Share ~$0.30 ~$0.20 1) Equity market impact represents the impact on results from assumed change in market value of equity investments underlying a
Slide 8: Prudential Financial, Inc. Capital
PRUDENTIAL FINANCIAL, INC. CAPITAL 1) Based on targeted Risk Based Capital (RBC) ratio of 400% for Prudential Insurance and equivalent levels of capital at other insurance operating entities. 2) For the purposes of calculating this ratio, PFI’s outstanding hybrid securities are considered 25% equity
Slide 9: Key Takeaways
KEY TAKEAWAYS Business mix and solid fundamentals continue to produce attractive financial profile Solid EPS growth despite market and other headwinds Top-tier ROE: long-term target of 13% to 14% over cycle Greater financial flexibility resulting from: –Business momentum driving solid capital genera
Slide 10: Questions and Answers
PRUDENTIAL FINANCIAL, INC. 2015 FINANCIAL OUTLOOK CONFERENCE CALL PRESENTATION QUESTIONS AND ANSWERS DECEMBER 11, 2014
Slide 11: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “includes,” “plans,” “assumes,” “estimates,”
Slide 12: Non-GAAP Measure
NON–GAAP MEASURE This presentation includes references to “adjusted operating income.” Adjusted operating income is a non-GAAP measure of our performance. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges and adjustments. A significant ele
Slide 13: Reconciliation Between AOI Earnings Per Share and the Comparable GAAP Measure
RECONCILIATION BETWEEN AOI EARNINGS PER SHARE AND THE COMPARABLE GAAP MEASURE YTD September 30, 2014 Earnings per share of Common Stock (diluted): Financial Services Businesses after-tax adjusted operating income $ 7.09 Reconciling items: Realized investment losses, net, and related charges and adju
Slide 14: Reconciliation for Earnings Per Share Excluding Market Driven and Discrete Items
RECONCILIATION FOR EARNINGS PER SHARE EXCLUDING MARKET DRIVEN AND DISCRETE ITEMS (1) YTD September 30, After-Tax Adjusted Operating Income basis: 2014 Earnings Per Share $ 7.09 Reconciling items: (2) Unlockings and experience true-ups (0.39) Integration costs for Hartford Life acquisition (0.03) Sub
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