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Prudential Financial Inc PRU Stock Quote

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NYSE:PRU

Morningstar‘s Stock Analysis PRU

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Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Lower Variable Income and Unfavorable Underwriting Mark Prudential’s Third-Quarter Results

Suryansh Sharma Equity Analyst

Analyst Note

| Suryansh Sharma |

No-moat-rated Prudential Financial reported disappointing third-quarter results with adjusted operating income of $2.13 per share, down 44% compared with $3.78 per share in the previous year. The third-quarter results were mainly impacted by lower variable investment income and unfavorable underwriting in the international business due to an elevated level of COVID-19 hospitalization claims in Japan. The weakness in the variable investment income in the current quarter was in line with our expectations given the market valuations. Interest rates have moved up significantly in the past few months, and we do expect the company to benefit from the higher interest rates in the long run given the dynamic of the life insurance business. We are maintaining our $105 fair value estimate for Prudential after incorporating the third-quarter results.   

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Key Statistics PRU

Company Profile PRU

Business Description

Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company’s investment management business, PGIM, contributes approximately 15% of its earnings and has over $1.5 trillion in assets under management. The U.S. businesses are responsible for about 45% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.

Contact
751 Broad Street
Newark, NJ, 07102
T +1 973 802-6000
Industry Insurance - Life
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 40,916

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