Prudential Q4 2020 Earnings Report
Key Takeaways
Prudential Financial, Inc. reported a net income attributable to the company of $819 million, or $2.03 per share, for the fourth quarter of 2020, compared to $1.128 billion, or $2.76 per share, for the fourth quarter of 2019. After-tax adjusted operating income was $1.183 billion, or $2.93 per share, for the fourth quarter of 2020, compared to $915 million, or $2.24 per share, for the fourth quarter of 2019.
Q4 2020 net income attributable to Prudential Financial, Inc. was $819 million or $2.03 per Common share versus $1.128 billion or $2.76 per share for the year-ago quarter.
Q4 2020 after-tax adjusted operating income was $1.183 billion or $2.93 per Common share versus $915 million or $2.24 per share for the year-ago quarter.
Assets under management amounted to $1.721 trillion versus $1.551 trillion for the year-ago.
The Company’s Board of Directors has authorized the repurchase of up to $1.5 billion of its outstanding Common Stock during the period from January 1, 2021 through December 31, 2021.
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Prudential Revenue by Segment
Forward Guidance
Prudential plans to reallocate between $5 billion and $10 billion of capital with the intention of doubling the earnings contribution of our higher growth businesses and halving Individual Annuities. Backed by the strength of balance sheet, Prudential also plans to return approximately $10 billion of capital to shareholders via dividends and share repurchases during this time period. This includes the resumption of share repurchases in the first quarter of 2021, as part of $1.5 billion authorization for the year.
Positive Outlook
- Reallocate between $5 billion and $10 billion of capital
- Intention of doubling the earnings contribution of higher growth businesses
- Halving Individual Annuities
- Return approximately $10 billion of capital to shareholders via dividends
- Resumption of share repurchases in the first quarter of 2021, as part of $1.5 billion authorization for the year
Challenges Ahead
- Unable to execute strategy because of market or competitive conditions
- Impact of the COVID-19 pandemic
- Risk that Prudential will be unable to execute strategy
- Because of market or competitive conditions
- Other factors