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Mar 31, 2023

Prudential Q1 2023 Earnings Report

Prudential Financial reported mixed results for Q1 2023, with net income increasing significantly but adjusted operating income decreasing due to lower investment and fee income, as well as elevated mortality experience.

Key Takeaways

Prudential Financial's Q1 2023 net income attributable to the company was $1.462 billion, or $3.93 per share, compared to a net loss of $493 million, or $1.33 per share, in the year-ago quarter. After-tax adjusted operating income was $990 million, or $2.66 per share, compared to $1.191 billion, or $3.10 per share, in the year-ago quarter. The company's results were influenced by underlying business growth, a higher interest rate environment, lower variable investment and fee income, and elevated seasonal mortality experience.

Net income attributable to Prudential Financial, Inc. was $1.462 billion, or $3.93 per Common share.

After-tax adjusted operating income was $990 million, or $2.66 per Common share.

Assets under management were $1.417 trillion.

Capital returned to shareholders totaled $718 million, including $250 million in share repurchases and $468 million in dividends.

Total Revenue
$15.1B
Previous year: $13.7B
+10.6%
EPS
$2.66
Previous year: $3.17
-16.1%
Gross Profit
$0
0
Cash and Equivalents
$17.4B
Previous year: $14.1B
+23.7%
Total Assets
$709B
Previous year: $878B
-19.2%

Prudential

Prudential

Prudential Revenue by Segment

Forward Guidance

The company is focused on becoming a higher growth, less market sensitive, and more nimble company. They are advancing their programmatic M&A strategy and continuing to invest in products and solutions that will drive long-term, sustainable growth and deliver value for their customers.

Positive Outlook

  • Underlying business growth
  • Benefits from a higher interest rate environment
  • Advancing programmatic M&A strategy
  • Expanding alternative capabilities
  • Generating additional fee-based revenue

Challenges Ahead

  • Lower variable investment and fee income
  • Elevated seasonal mortality experience
  • Lower net fee income
  • Lower net investment spread results
  • Less favorable underwriting results