Prudential Financial Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Prudential Financial Inc. has submitted its Q1 2024 10-Q filing, detailing financial performance and position.</b>

AI Summary

PRUDENTIAL FINANCIAL INC (PRS) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Prudential Financial Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal business is life insurance. The filing includes data related to common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. Key financial statement elements such as parent and noncontrolling interests are also detailed.

Why It Matters

For investors and stakeholders tracking PRUDENTIAL FINANCIAL INC, this filing contains several important signals. This 10-Q provides investors with the latest financial snapshot of Prudential Financial Inc., crucial for understanding its current operational health and strategic direction. The detailed financial data allows for comparison with previous periods and industry benchmarks, aiding in investment decisions.

Risk Assessment

Risk Level: medium — PRUDENTIAL FINANCIAL INC shows moderate risk based on this filing. The filing is a standard 10-Q, which is a routine disclosure for public companies. The risk is medium due to the inherent volatility and regulatory oversight of the life insurance industry.

Analyst Insight

Monitor future filings for trends in revenue, net income, and capital adequacy ratios to assess Prudential's financial stability and growth prospects.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)
• 6311 — SIC Code (Standard Industrial Classification)
• 223703799 — IRS Number (IRS Number)

Key Players & Entities

• PRUDENTIAL FINANCIAL INC (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-02 (date) — Filed as of date
• NJ (location) — State of incorporation
• 751 BROAD ST (address) — Business address street 1
• NEWARK (location) — Business address city
• 07102 (postal_code) — Business address zip
• 9738026000 (phone_number) — Business phone

FAQ

Industry Context

Prudential Financial Inc. operates within the life insurance sector, a key part of the broader financial services industry.

Regulatory Implications

As a life insurance company, Prudential is subject to extensive regulation by state insurance departments and federal agencies, impacting its operations and financial reporting.

What Investors Should Do

1. Review the detailed financial statements within the 10-Q for specific figures on revenue, net income, and assets.
2. Analyze the changes in equity components (common stock, retained earnings, etc.) compared to the previous quarter and year.
3. Examine any disclosures related to accounting standards updates or significant financial instruments.

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for fiscal year 2024, providing updated financial information compared to the prior year's filings.

Key Financial Figures

• $0.01 — he registrant's Common Stock (par value $0.01) were outstanding. Table of Contents

Filing Documents

• pru-20240331.htm (10-Q) — 8829KB
• pru-20240331x10qxexh311.htm (EX-31.1) — 10KB
• pru-20240331x10qxexh312.htm (EX-31.2) — 10KB
• pru-20240331x10qxexh321.htm (EX-32.1) — 4KB
• pru-20240331x10qxexh322.htm (EX-32.2) — 4KB
• 0001137774-24-000068.txt (&nbsp;) — 45837KB
• pru-20240331.xsd (EX-101.SCH) — 146KB
• pru-20240331_cal.xml (EX-101.CAL) — 164KB
• pru-20240331_def.xml (EX-101.DEF) — 1205KB
• pru-20240331_lab.xml (EX-101.LAB) — 1752KB
• pru-20240331_pre.xml (EX-101.PRE) — 1540KB
• pru-20240331_htm.xml (XML) — 11827KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Unaudited Interim Consolidated Statements of Financial Position as of March 31, 2024 and December 31, 2023 1 Unaudited Interim Consolidated Statements of Operations for the three months ended March 3 1 , 202 4 and 202 3 2 Unaudited Interim Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 202 3 3 Unaudited Interim Consolidated Statements of Equity for the three months ended March 31, 2024 and 202 3 4 Unaudited Interim Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 202 3 5 Notes to Unaudited Interim Consolidated Financial Statements 7 1. Business and Basis of Presentation 7 2. Significant Accounting Policies and Pronouncements 8 3. Investments 9 4. Variable Interest Entities 23 5. Derivatives and Hedging 24 6. Fair Value of Assets and Liabilities 32 7. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired 48 8. Separate Accounts 49 9. Liability for Future Policy Benefits 52 10. Policyholders' Account Balances 61 11. Market Risk Benefits 66 12. Reinsurance 68 13. Closed Block 71 14. Income Taxes 73 15. Short-Term and Long-Term Debt 75 16. Employee Benefit Plans 76 17. Equity 77 18. Earnings Per Share 81 19. Segment Information 82 20. Related Party Transactions 86 21. Commitments and Contingent Liabilities 87

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 92

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 149

Controls and Procedures

Item 4. Controls and Procedures 149

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 150

Risk Factors

Item 1A. Risk Factors 150

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 150

Other Information

Item 5. Other Information 150

Exhibits

Item 6. Exhibits 151 GLOSSARY 152

SIGNATURES

SIGNATURES 154 Table of Contents

Forward-Looking Statements

Forward-Looking Statements Certain of the statements included in this Quarterly Report on Form 10-Q 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 fi

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements PRUDENTIAL FINANCIAL, INC. Unaudited Interim Consolidated Statements of Financial Position March 31, 2024 and December 31, 2023 (in millions, except share amounts) March 31, 2024 December 31, 2023 ASSETS Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2024-$ 171 ; 2023-$ 160 ) (amortized cost: 2024-$ 342,228 ; 2023-$ 334,598 )(1) $ 318,510 $ 316,321 Fixed maturities, trading, at fair value (amortized cost: 2024-$ 11,307 ; 2023-$ 10,624 )(1) 10,288 9,790 Assets supporting experience-rated contractholder liabilities, at fair value 3,359 3,168 Equity securities, at fair value (cost: 2024-$ 4,609 ; 2023-$ 5,786 )(1) 7,224 8,242 Commercial mortgage and other loans (net of $ 514 and $ 460 allowance for credit losses; includes $ 157 and $ 519 of loans measured at fair value under the fair value option at March 31, 2024 and December 31, 2023, respectively)(1) 58,781 59,305 Policy loans 9,907 10,047 Other invested assets (net of $ 1 and $ 1 allowance for credit losses; includes $ 6,763 and $ 6,074 of assets measured at fair value at March 31, 2024 and December 31, 2023, respectively)(1) 24,227 22,855 Short-term investments (net of allowance for credit losses: 2024-$ 2 ; 2023-$ 0 ) 5,953 5,005 Total investments 438,249 434,733 Cash and cash equivalents(1) 18,735 19,419 Accrued investment income(1) 3,361 3,287 Deferred policy acquisition costs 20,613 20,856 Value of business acquired 484 530 Market risk benefit assets 2,225 1,981 Reinsurance recoverables and deposit receivables (net of $ 11 and $ 12 allowance for credit losses; includes $ 224 and $ 149 of embedded derivatives at fair value at March 31, 2024 and December 31, 2023, respectively)(2) 27,929 27,311 Income tax assets 958 939 Other assets (net of $ 3 and $ 3 allowance for credit losses; includes $ 19 and $ 11 of assets at fair value at March 31, 2024 and December 31, 2023, respectively)(1)(2) 13,205 13,179 Separate acco

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View this 10-Q filing on SEC EDGAR