Prudential Financial (PRU) investor relations material

Executive summary

• Pre-tax adjusted operating income reached $1.7B ($3.58/share) in Q2 2025, up 9% year-over-year, with ROE at 14.4% and adjusted book value per share at $96.41.

• Net income attributable to shareholders was $533M ($1.48/share), down from $1.198B ($3.28/share) year-over-year, mainly due to investment losses and assumption update charges.

• Assets under management reached $1.58T, up from $1.482T year-over-year, driven by market appreciation, net inflows, and strong investment performance.

• Strategic priorities include integrating PGIM’s multi-manager model, expanding in Japan and Brazil, and fostering a high-performance culture.

• $735M was returned to shareholders in Q2 2025, including $250M in share repurchases and $485M in dividends.

Financial highlights

• Adjusted operating income per share increased to $3.58 in Q2 2025 from $3.28 in Q2 2024; YTD figure rose to $6.87 from $6.34 year-over-year.

• Adjusted operating ROE improved to 14.4% YTD 2025 from 13.1% YTD 2024.

• Group Insurance posted a 13% YTD sales growth and a favorable Q2 benefits ratio of 80.9%.

• Individual Life sales increased 10% year-over-year, driven by accumulation-focused products.

• Institutional Retirement Strategies sales reached $9B YTD, including $5.6B in Longevity Risk Transfer transactions.

Outlook and guidance

• Management targets 5%–8% EPS growth on a three-year average, with near-term headwinds from variable annuity runoff and Japan surrenders factored in.

• Integration of PGIM and expansion in high-growth international markets are expected to drive future growth.

• Surrender activity in Japan remains a near-term headwind but is stabilizing; $100M impact expected in 2025.

• Management is monitoring market volatility, interest rate changes, and regulatory developments, and may adjust capital and risk management strategies as needed.