Prudential Financial Reports $2.73 Billion Net Income and $70.4 Billion Revenue for 2024

Prudential Financial, Inc. (PFI) reported net income attributable to the company of $2.73 billion for the year ended December 31, 2024, compared to $2.49 billion in 2023. Revenues totaled $70.4 billion in 2024, an increase of $16.4 billion from 2023. This increase was driven by a $360 million favorable variance from realized investment gains (losses), net, and related charges and adjustments, and a $327 million favorable variance from higher adjusted operating income across business segments. Offsetting these increases were a $453 million unfavorable variance in market risk benefits and a $162 million unfavorable variance from market experience updates.

Significant changes compared to the prior year included a $162 million increase in PGIM's adjusted operating income, primarily due to higher asset management fees and other revenues, partially offset by higher expenses. The Retirement Strategies segment saw a $161 million increase in adjusted operating income, largely attributable to higher net investment spread results and a favorable impact from annual assumption updates. Conversely, the Individual Life segment experienced a $110 million decrease in adjusted operating income, primarily due to higher expenses related to reinsurance transactions and unfavorable assumption updates.

Strategic developments during the year included the acquisition of a majority stake in Deerpath Capital Management, LP, a private credit manager, and the launch of Prismic Life Reinsurance, Ltd., a Bermuda-based life and annuity reinsurance company, in which PFI holds a 20% interest. The company also exited PGIM Wadhwani LLP and Assurance IQ, LLC during the year. Additionally, PFI implemented organizational structure changes, resulting in a $200 million restructuring charge in the fourth quarter of 2023.

Operational developments included a global employee headcount of 47,000 as of December 31, 2024. The U.S. workforce experienced a 15.3% annual turnover rate, with voluntary turnover at 4.7%. Approximately 37% of 1,900 U.S. positions filled during 2024 were filled internally. PGIM's assets under management increased to $1.375 trillion as of December 31, 2024, from $1.298 trillion at the end of 2023. The company also completed several significant reinsurance transactions during the year, impacting reserves and capital levels.

Looking ahead, PFI anticipates continued benefits from its mutually-reinforcing business system and plans to allocate capital to higher-growth businesses while reducing capital in lower-growth areas. The company expects to leverage PGIM's scale and capabilities, expand access to retirement security through Retirement Strategies, diversify its portfolio in Group Insurance, and enhance market presence in International Businesses. The company acknowledges several risk factors, including investment, insurance, market, liquidity, operational, and model risks, as well as strategic risks related to regulatory and technological changes.