Prudential Financial Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Prudential Financial Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations.</b>

AI Summary

PRUDENTIAL FINANCIAL INC (PRS) filed a Annual Report (10-K) with the SEC on February 21, 2024. Prudential Financial Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 751 Broad St, Newark, NJ 07102. Prudential Financial Inc. is classified under the SIC code 6311 for Life Insurance. The report includes financial data for the fiscal year 2023 and comparative data for 2022.

Why It Matters

For investors and stakeholders tracking PRUDENTIAL FINANCIAL INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Prudential's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. The detailed financial statements and disclosures within the report are essential for understanding Prudential's revenue streams, profitability, and market position within the life insurance industry.

Risk Assessment

Risk Level: medium — PRUDENTIAL FINANCIAL INC shows moderate risk based on this filing. The company operates in the highly regulated life insurance industry, which involves significant market and financial risks that could impact its profitability and solvency.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Prudential's performance and potential risks in the upcoming fiscal year.

Key Numbers

• 20231231 — Conformed Period of Report (Fiscal year end)
• 20240221 — Filed as of Date (Date of filing)
• 2023-01-01 — Fiscal Year Start Date (Reporting period)
• 2023-12-31 — Fiscal Year End Date (Reporting period)

Key Players & Entities

• PRUDENTIAL FINANCIAL INC (company) — Filer name
• 0001137774 (company) — Central Index Key
• 6311 (company) — Standard Industrial Classification
• NJ (company) — State of Incorporation
• 751 BROAD ST (company) — Business Address Street 1
• NEWARK (company) — Business Address City
• 07102 (company) — Business Address ZIP
• 9738026000 (company) — Business Phone

FAQ

Risk Factors

• Market Risk [high — market]: The company is exposed to market risks, including fluctuations in interest rates, equity prices, and foreign currency exchange rates, which can affect investment returns and the fair value of financial instruments.
• Credit Risk [medium — financial]: Prudential is subject to credit risk from its investments in debt securities and from counterparties in derivative and insurance transactions.
• Operational Risk [medium — operational]: The company faces operational risks, including failures in systems, processes, or people, which could lead to financial losses or reputational damage.
• Regulatory and Compliance Risk [medium — regulatory]: Prudential operates in a highly regulated environment, and changes in laws or regulations, or failure to comply with existing ones, could adversely affect its business.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.

Key Financial Figures

• $0.01 — he registrant's Common Stock (par value $0.01) held by non-affiliates of the registra
• $1.450 — l investment manager with approximately $1.450 trillion of assets under management as
• $200 m — e and Other operations of approximately $200 million, equivalent to a 20% interest, in
• $100,000 — le assets or annual income in excess of $100,000) and affluent (households with investab
• $250,000 — lds with investable assets in excess of $250,000) customers with a focus on innovative p

Filing Documents

• pru-20231231.htm (10-K) — 16363KB
• pru-20231231x10kxexh1032.htm (EX-10.32) — 13KB
• pru-20231231x10kxexh211.htm (EX-21.1) — 250KB
• pru-20231231x10kxexh231.htm (EX-23.1) — 3KB
• pru-20231231x10kxexh241.htm (EX-24.1) — 33KB
• pru-20231231x10kxexh311.htm (EX-31.1) — 10KB
• pru-20231231x10kxexh312.htm (EX-31.2) — 10KB
• pru-202312x31x10kxexh321.htm (EX-32.1) — 3KB
• pru-20231231x10kxexh322.htm (EX-32.2) — 3KB
• 0001137774-24-000045.txt (&nbsp;) — 83861KB
• pru-20231231.xsd (EX-101.SCH) — 259KB
• pru-20231231_cal.xml (EX-101.CAL) — 228KB
• pru-20231231_def.xml (EX-101.DEF) — 2361KB
• pru-20231231_lab.xml (EX-101.LAB) — 3012KB
• pru-20231231_pre.xml (EX-101.PRE) — 2841KB
• pru-20231231_htm.xml (XML) — 21646KB

Item 1. Business

PART I Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 34

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 46 Item 1C. Cybersecurity 46

Properties

Item 2. Properties 48

Legal Proceedings

Item 3. Legal Proceedings 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 49

[Reserved]

Item 6. [Reserved] 49

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 50

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 138

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 144

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 333

Controls and Procedures

Item 9A. Controls and Procedures 333

Other Information

Item 9B. Other Information 333

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 333

Item 10. Directors, Executive Officers and Corporate Governance

PART III Item 10. Directors, Executive Officers and Corporate Governance 333

Executive Compensation

Item 11. Executive Compensation 333

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 334

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 334

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 334

Item 15. Exhibits, Financial Statement Schedules

PART IV Item 15. Exhibits, Financial Statement Schedules 335

Form 10-K Summary

Item 16. Form 10-K Summary 347 GLOSSARY 348 EXHIBIT INDEX 352

Forward-Looking Statements

Forward-Looking Statements Certain of the statements included in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as "expects," "believes," "anticipates," "includes," "plans," "assumes," "estimates," "projects," "intends," "should," "will," "shall" or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. There can be no assurance that future developments affecting Prudential Financial, Inc. and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: (1) losses on investments or financial contracts due to deterioration in credit quality or value, or counterparty default; (2) losses on insurance products due to mortality experience, morbidity experience or policyholder behavior experience that differs significantly from our expectations when we price our products; (3) changes in interest rates, equity prices and foreign currency exchange rates that may (a) adversely impact the profitability of our products, the value of separate accounts supporting these products or the value of assets we manage, (b) result in losses on derivatives we use to hedge risk or increase collateral posting requirements and (c) limit opportunities to invest at appropriate returns; (4) guarantees within certain of our products which are market sensitive and may decrease our earnings or increase the volatility of our results of operations or finan

BUSINESS

ITEM 1. BUSINESS Table of Contents Page Overview 2 PGIM 3 Retirement Strategies 5 Group Insurance 7 Individual Life 9 International Businesses 11 Corporate and Other 13 Closed Block Division 14 Seasonality of Key Financial Items 15 Reinsurance 16 Intangible and Intellectual Property 17 Regulation 18 Human Capital Resources 30 Available Information 32 Information About our Executive Officers 32 1 Table of Contents Overview Prudential Financial, Inc. ("Prudential Financial" or "PFI"), a global financial services leader and premier active global investment manager with approximately $1.450 trillion of assets under management as of December 31, 2023, has operations in the United States, Asia, Europe and Latin America. Through our subsidiaries and affiliates we offer a wide array of financial products and services, including life insurance, annuities, retirement-related products and services, mutual funds and investment management. We offer these products and services to individual and institutional customers through proprietary and third-party distribution networks. Our principal executive offices are located in Newark, New Jersey, and Prudential Financial's Common Stock is publicly traded on the New York Stock Exchange under the ticker symbol "PRU." On December 18, 2001, The Prudential Insurance Company of America ("PICA") converted from a mutual life insurance company owned by its policyholders to a stock life insurance company and became a wholly-owned subsidiary of Prudential Financial. The demutualization was carried out under PICA's Plan of Reorganization, which required us to establish and operate a regulatory mechanism known as the "Closed Block." The Closed Block includes certain in-force participating insurance and annuity products and corresponding assets that are used for the payment of benefits and policyholders' dividends on these products, as well as certain related assets and liabilities. Effect

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View this 10-K filing on SEC EDGAR