Prudential Financial reported its second-quarter 2024 financial results, reporting net income attributable to the company of $1.198 billion, or $3.28 per common share.

This is an increase from $511 million, or $1.38 per common share, in the second quarter of 2023. Adjusted operating income after tax for the quarter was $1.234 billion, or $3.39 per common share, compared to $1.142 billion, or $3.09 per share, in the year-ago period.

PGIM, the global investment management business of Prudential, reported adjusted operating income of $206 million for the second quarter of 2024, up from $179 million in the same quarter last year. The increase was driven by higher asset management fees and transaction-related revenue, which was partially offset by higher expenses.

PGIM’s total assets under management reached $1.328 trillion, up 5% from the prior year, primarily due to higher market capitalization and net inflows, despite $9.5 billion in net outflows from third parties.

U.S. companies reported adjusted operating income of $1.07 billion, up from $956 million in the second quarter of 2023. This growth included a $51 million positive impact from the annual assumption update and other improvements. Excluding these, the increase was primarily due to higher net investment spread and positive underwriting results, which were offset by lower net fee income.

Prudential Financial Results Across Sectors

In U.S. companies, retirement strategies, which include corporate and individual retirement strategies, reported combined adjusted operating income of $1.036 billion, compared to $876 million in the prior-year quarter. Corporate retirement strategies reported adjusted operating income of $550 million, up from $428 million, benefiting from a $126 million positive impact from the annual assumption update.

Account values ​​rose 3% to $265 billion. Individual Retirement Strategies reported adjusted operating income of $486 million, up from $448 million, as account values ​​rose 8% to $124 billion.

The insurance group reported adjusted operating income of $121 million, down from $139 million in the year-ago quarter, primarily due to higher expenses. The individual life business reported a loss of $87 million, compared to a loss of $59 million in the second quarter of 2023, impacted by unfavorable annual assumption updates and improvements.

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The International business segment, which consists of Life Planner and Gibraltar Life & other, reported adjusted operating income of $702 million, down from $784 million in the prior-year quarter. Life Planner income fell to $400 million from $487 million, while Gibraltar Life & other saw a slight increase to $302 million from $297 million.

The companies reported an adjusted operating loss of $371 million, compared to a loss of $472 million in the second quarter of 2023. The improvement was primarily due to lower expenses and higher income from pension and other employee benefit plans.

Net income for the current quarter included $128 million of realized investment gains before taxes, fees and related adjustments. This contrasts with a net realized investment loss of $757 million in the prior year quarter.

The current quarter results were impacted by $77 million in net credit-related losses and $297 million in net market risk benefit losses.

“Our fundamentals are strong, backed by our financial strength and integrated investment, insurance and retirement capabilities that fuel our growth,” said Chairman and CEO Charles Lawrie (pictured above). “Prudential is well positioned to meet the growing needs of our customers around the world with solutions and products that help them protect their life’s work and live better, longer lives.”

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