Prudential Financial has reported a second quarter 2023 net income of $511 million, compared to a net loss of $1.010 billion a year ago.
The current quarter included a net after-tax charge from annual assumption update and other refinements of $329 million versus a charge of $1.294 billion in the year-ago quarter.
The year-ago quarter also included an after-tax gain due to the sales of a block of legacy variable annuities and the Full Service business of $1.607 billion, the company said.
Adjusted operating income rose to $1.087 billion from $895 million a year earlier.
“Our second quarter results reflect continued momentum across our businesses, including the fourth consecutive quarter of underlying earnings growth and record operating earnings for Group Insurance,” Charles Lowrey, Chairman and CEO, commented.
“We continue to execute on our strategy to reduce market sensitivity and invest in businesses that support our long-term growth. Since last quarter, we reached agreements to reinsure significant blocks of traditional variable annuities and guaranteed universal life policies and continued to expand in growth markets.”
“Our strategic progress has increased capital flexibility, further strengthened our rock solid balance sheet, and supported over $700 million of capital being returned to shareholders during the second quarter.”
“Looking ahead, we remain confident that our strategy, the strength of our brand, global asset and liability origination capabilities, and multi-channel distribution will enable Prudential to be a global leader in expanding access to investing, insurance, and retirement security,” Lowrey concluded.
By segment, and the firm’s global investment management business, PGIM, reported adjusted operating income of $179 million in Q2 2023, down from $206 million a year earlier. U.S. businesses reported an increase in adjusted operating profit to $956 million from $573 million a year earlier.
The Retirement segment, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $876 million for the second quarter of 2023, compared to $2.181 billion in the year-ago quarter.
While Group Insurance reported adjusted operating income of $139 million in Q2 2023, a record high, against $54 million in Q2 2022.
Prudential’s International Businesses, comprised of Life Planner, Gibraltar Life and Other, reported adjusted operating income of $784 million in Q2 2023, which is up from $692 million posted in Q2 2022.
Corporate & Other reported a loss, on an adjusted operating income basis, of $527 million for the second quarter of 2023, compared to a loss of $321 million in the year-ago quarter.
