Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Presentation (December 2015)
16 slides from Prudential Financial's investor presentation, Dec 10, 2015
Slide 1: 2016 Financial Outlook Conference Call Presentation
Prudential Financial, inc. 2016 Financial Outlook Conference Call Presentation December 10, 2015 Exhibit 99.1
Slide 2: Building Prudential's Investor Value Proposition
Building Prudential’s Investor Value Proposition 2016 Financial Outlook Conference Call Includes capital deployed in subsidiaries. The inclusion of Risk Based Capital (RBC) measures is intended only for the information of investors and is not intended for the purpose of ranking any insurance company
Slide 3: Return On Equity
Return On Equity (1) 2016 Financial Outlook Conference Call Long-term ROE objective of 13% to 14% over cycle Trailing 12 Months ended 9/30/15 ROE based on AOI excluding market driven and discrete items as disclosed in company earnings releases; average attributed equity excludes accumulated other co
Slide 4: Key Considerations by Business: International and Individual Life
Key Considerations by Business 2016 Financial Outlook Conference Call International Businesses Weaker Yen negatively impacts comparison of results; mitigated by hedging programs and nearly two thirds contribution to International earnings from non-Yen sources (1) Continuing Life Planner force growth
Slide 5: Key Considerations by Business: Retirement, Annuities, Asset Management
Key Considerations by Business 5 2016 Financial Outlook Conference Call Retirement Continued development of Pension Risk Transfer (PRT) market expected to drive account value growth, although not assuming “jumbo” PRT transactions due to episodic nature; roughly $3 billion of new funded business requ
Slide 6: Individual Annuities Living Benefits Risk Management Strategies
Individual Annuities Living Benefits Risk Management Strategies 2016 Financial Outlook Conference Call Plan to recapture living benefit rider risks from captive reinsurer; phased implementation during 2016 Manage rider risk together with host contract and accompanying death benefits risk in statutor
Slide 7: 2016 Outlook Key Assumptions & Considerations
2016 Outlook 7 2016 Financial Outlook Conference Call Key Assumptions & Considerations: S&P 500 ends 2015 at 2,080 and grows 6% annually; ending 2016 at 2,205 U.S. Dollar @ 106 Yen and 1,100 Won Interest rates based on averaging of forward yield curves 10-Year Treasury rises to 2.50% by end of 2016
Slide 8: 2015 Adjusted Baseline Results
2015 Adjusted Baseline Results 8 2016 Financial Outlook Conference Call 2015 Baseline (4) $9.50 - $9.60 Market Driven and Discrete Items (1) 3Q 2015 YTD Results After-Tax AOI Basis 3Q 2015 YTD Results Excluding Market Driven and Discrete Items Run Rate Adjustment Items (2) Bridge to Full Year Base (
Slide 9: 2016 Earnings Guidance
2016 Earnings Guidance 9 2016 Financial Outlook Conference Call Not a projection of full year results. Excludes impact of market unlockings which would be regarded as "market driven and discrete items". Not a projection of full year results. Excludes impact of market unlockings which would be regard
Slide 10: Equity Market and Interest Rate Sensitivity of Earnings
Equity Market and Interest Rate Sensitivity of Earnings 2016 Financial Outlook Conference Call Equity market impact represents the impact on results from assumed change in market value of equity investments underlying account values, and interest rate impact represents the impact on results from ass
Slide 11: Key Takeaways
Key Takeaways 11 2016 Financial Outlook Conference Call Business mix and solid fundamentals continue to produce attractive financial profile; continuing to invest in longer-term opportunities Base EPS growth despite headwinds from interest rates, currencies, etc. Top-tier ROE: long-term target of 13
Slide 12: Questions and Answers
Prudential Financial, inc. 2016 Financial Outlook Conference Call Presentation Questions and Answers December 10, 2015
Slide 13: 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 14: Non-GAAP Measure
Non-GAAP Measure This presentation includes references to “adjusted operating income” and return on equity, which is based on adjusted operating income. Adjusted operating income is a non-GAAP measure of performance. Adjusted operating income excludes “Realized investment gains (losses), net,” as ad
Slide 15: Reconciliations between adjusted operating income and the comparable GAAP measure
Reconciliations between adjusted operating income and the comparable GAAP measure 2016 Financial Outlook Conference Call
Slide 16: Reconciliation for pre-tax adjusted operating income excluding market driven and discrete items
Reconciliation for pre-tax adjusted operating income excluding market driven and discrete items Diluted; based on after-tax AOI; tax effect for market driven and discrete items at 35%. Includes amortization of deferred policy acquisition and other costs. Includes adjustments to reflect updated estim
Prudential Financial — Investor Presentation (December 2015) on 6ix