US insurance and investment firm, Prudential Financial, Inc., has reported fourth-quarter 2023 net income of $1.317 billion compared to a net loss of $52 million in the prior year’s quarter.
The insurer’s after-tax adjusted operating income was $943 million in Q4 2023, compared year over year to $932 million.
The net income attributable to Prudential Financial was $2.488 billion for full year 2023, compared to a net loss of $1.647 billion in 2022. Meanwhile, the after-tax adjusted operating income was $4.286 billion for 2023, compared to $3.914 billion in 2022.
Charles Lowrey, Chairman and Chief Executive Officer, said that the insurer’s 2023 results “reflect continued strong sales across our insurance and retirement businesses and solid underlying earnings growth.”
Prudential’s assets under management increased to $1.450 trillion versus $1.377 trillion for the year-ago quarter.
Lowrey further added, “We are proud of the significant progress we made to become a higher growth, more capital efficient, and more nimble company. In 2023, we successfully reduced our market sensitivity and increased capital flexibility through multiple strategic transactions. We reached more people around the world with our leading life, retirement, and investment products through expanded distribution and enhanced technology.
“We launched Prismic, a life and annuity reinsurance company, to drive future growth and unlock value for all stakeholders. And finally, we adopted a new operating model to ensure we meet our customers’ evolving needs while driving efficiency to maintain our competitive market position.
“Looking ahead, we are confident that our strategy and mutually reinforcing business system position us well to deliver long-term, sustainable growth, and to continue to be a global leader in expanding access to investing, insurance, and retirement security.”
The group insurance segment reported adjusted operating income of $66 million in Q4 2023 compared to $15 million year over year. The increase is primarily attributed to more favourable underwriting results in both group life and disability and lower expenses. The reported earned premiums, policy charges, and fees of $1.4 billion decreased 1% from the year-ago quarter, says the firm.
For individual life, the reported adjusted operating income was $8 million in Q4 2023, compared to a loss of $52 million year over year attributed to higher net investment spread results and lower expenses, partially offset by less favourable underwriting results.
The sales for the segment were $205 million in Q4 2023, up by 33% from the year-ago quarter, driven by Variable Life and Term sales, reflecting the pivot to less market-sensitive products. PGIM, the insurer’s global investment management business, reported an adjusted operating income of $172 million for Q4 2023, compared to $230 million a year earlier. PGIM’s assets under management of $1.298 trillion were up 6% from the year-ago quarter, primarily resulting from equity market appreciation, partially offset by net outflows.
The U.S. Businesses reported adjusted operating income of $988 million for Q4 2023, compared to $710 million year over year, attributable to higher net investment spread results and lower expenses, partially offset by lower net fee income.
