Prudential Financial Q2 2024: $1.45T Assets

TL;DR

PRU Q2 assets hit $1.45T. All systems go.

AI Summary

Prudential Financial Inc. reported its Q2 2024 results, with total assets reaching $1.45 trillion as of June 30, 2024. The company's filing covers the period from January 1, 2024, to June 30, 2024. Key financial instruments and accounting standards updates are detailed within the report.

Why It Matters

This filing provides insight into the financial health and asset management scale of Prudential Financial, a major player in the insurance and financial services industry.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• $1.45T — Total Assets (As of June 30, 2024)

Key Players & Entities

• PRUDENTIAL FINANCIAL INC (company) — Filer
• 20240630 (date) — Period of report
• $1.45 trillion (dollar_amount) — Total assets as of June 30, 2024

FAQ

Key Financial Figures

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

Filing Documents

• pru-20240630.htm (10-Q) — 10792KB
• pru-20240630x10qxexh311.htm (EX-31.1) — 10KB
• pru-20240630x10qxexh312.htm (EX-31.2) — 10KB
• pru-20240630x10qxexh321.htm (EX-32.1) — 4KB
• pru-20240630x10qxexh322.htm (EX-32.2) — 4KB
• 0001137774-24-000151.txt ( ) — 52848KB
• pru-20240630.xsd (EX-101.SCH) — 146KB
• pru-20240630_cal.xml (EX-101.CAL) — 164KB
• pru-20240630_def.xml (EX-101.DEF) — 1198KB
• pru-20240630_lab.xml (EX-101.LAB) — 1784KB
• pru-20240630_pre.xml (EX-101.PRE) — 1543KB
• pru-20240630_htm.xml (XML) — 14537KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2024 and December 31, 2023 1 Unaudited Interim Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 2 Unaudited Interim Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 3 Unaudited Interim Consolidated Statements of Equity for the three and six months ended June 30, 2024 and 2023 4 Unaudited Interim Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 6 Notes to Unaudited Interim Consolidated Financial Statements 8 1. Business and Basis of Presentation 8 2. Significant Accounting Policies and Pronouncements 9 3. Investments 10 4. Variable Interest Entities 26 5. Derivatives and Hedging 27 6. Fair Value of Assets and Liabilities 37 7. Deferred Policy Acquisition Costs, Deferred Sales Inducements and Value of Business Acquired 53 8. Separate Accounts 55 9. Liability for Future Policy Benefits 58 10. Policyholders' Account Balances 66 11. Market Risk Benefits 71 12. Reinsurance 73 13. Closed Block 77 14. Income Taxes 79 15. Short-Term and Long-Term Debt 81 16. Employee Benefit Plans 83 17. Equity 84 18. Earnings Per Share 88 19. Segment Information 89 20. Related Party Transactions 94 21. Commitments and Contingent Liabilities 95

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 100

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 168

Controls and Procedures

Item 4. Controls and Procedures 168

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 169

Risk Factors

Item 1A. Risk Factors 169

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 169

Other Information

Item 5. Other Information 169

Exhibits

Item 6. Exhibits 170 GLOSSARY 171

SIGNATURES

SIGNATURES 173 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 June 30, 2024 and December 31, 2023 (in millions, except share amounts) June 30, 2024 December 31, 2023 ASSETS Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2024-$ 169 ; 2023-$ 160 ) (amortized cost: 2024-$ 340,984 ; 2023-$ 334,598 )(1) $ 311,092 $ 316,321 Fixed maturities, trading, at fair value (amortized cost: 2024-$ 11,124 ; 2023-$ 10,624 )(1) 10,250 9,790 Assets supporting experience-rated contractholder liabilities, at fair value 3,351 3,168 Equity securities, at fair value (cost: 2024-$ 4,592 ; 2023-$ 5,786 )(1) 7,098 8,242 Commercial mortgage and other loans (net of $ 564 and $ 460 allowance for credit losses; includes $ 635 and $ 519 of loans measured at fair value under the fair value option at June 30, 2024 and December 31, 2023, respectively)(1) 60,243 59,305 Policy loans 9,739 10,047 Other invested assets (net of $ 1 and $ 1 allowance for credit losses; includes $ 6,728 and $ 6,074 of assets measured at fair value at June 30, 2024 and December 31, 2023, respectively)(1) 24,634 22,855 Short-term investments (net of allowance for credit losses: 2024-$ 0 ; 2023-$ 0 ) 6,241 5,005 Total investments 432,648 434,733 Cash and cash equivalents(1) 17,111 19,419 Accrued investment income(1) 3,434 3,287 Deferred policy acquisition costs 20,564 20,856 Value of business acquired 446 530 Market risk benefit assets 2,233 1,981 Reinsurance recoverables and deposit receivables (net of $ 11 and $ 12 allowance for credit losses; includes $ 555 and $ 149 of embedded derivatives at fair value at June 30, 2024 and December 31, 2023, respectively)(2) 27,746 27,311 Income tax assets 856 939 Other assets (net of $ 3 and $ 3 allowance for credit losses; includes $ 0 and $ 11 of assets at fair value at June 30, 2024 and December 31, 2023, respectively)(1)(2) 13,299 13,179 Separate account ass

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View this 10-Q filing on SEC EDGAR