Prudential Financial (PRU) Q4 2023 earnings summary

Executive summary

• 2023 adjusted operating income before tax was $5.516B, after-tax adjusted operating income was $4.286B, adjusted EPS was $11.62 and adjusted ROE was 12.2%.

• 4Q23 adjusted operating income before tax was $1.252B and adjusted EPS was $2.58; net income was $1.317B, or $3.61 per share.

• Priorities included reducing market sensitivity, improving capital efficiency, expanding growth capabilities and simplifying operations; parent highly liquid assets were $4.1B.

Financial highlights

• 2023 net income was $2.488B, or $6.74 per share, versus a $1.647B net loss in 2022; 4Q23 net income was $1.317B versus a $52M loss.

• Adjusted operating income before tax was $5.516B for 2023 versus $5.082B in 2022; 4Q23 was $1.252B versus $1.229B.

• Consolidated revenue was $50.894B in 2023, down 15% YoY; 4Q revenue was $13.020B versus $12.206B.

• Adjusted book value per diluted share was $96.64 at year-end; GAAP book value per diluted share was $76.77.

• 4Q23 net income included $314M of pre-tax realized investment gains and related adjustments, $216M of market-risk-benefit gains and a $177M goodwill impairment.

Outlook and guidance

• 2024 estimated Corporate & Other annual operating loss was $1.85B; the expected effective tax rate was 22%–23%.

• PGIM quarterly Other Related Revenues, net of related expenses, were expected at $35M–$45M, with an elevated level expected in 4Q.

• 1Q24 adjusted operating income baseline was $1.572B and adjusted EPS was $3.36; it included $0.14 per share of first-quarter-specific expense and seasonality impacts and was not a projection.

• 2024 seasonality includes higher total-company expenses in 4Q, typically $125M–$175M above the quarterly average, and first-quarter compensation expense effects.