Prudential Financial, Inc. 5.62 (PRS) 8-KResults of Operations and Financial Condition
Filed: 6 Feb 13, 12:00am
Exhibit 99.2
Prudential Financial, Inc. (PRU)
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Quarterly Financial Supplement
FINANCIAL SERVICES BUSINESSES
Fourth Quarter 2012
Reference is made to Prudential Financial, Inc.’s filings with the Securities and Exchange Commission for general information, and consolidated financial information, regarding Prudential Financial, Inc., including its Closed Block Business. All financial information in this document is unaudited.
February 6, 2013
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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
CONTENTS
Page | ||||
HIGHLIGHTS | ||||
Financial Highlights | 1-3 | |||
Operations Highlights | 4 | |||
FINANCIAL SERVICES BUSINESSES | ||||
Combined Statements of Operations | 5 | |||
Combined Balance Sheets | 6 | |||
Combining Statements of Operations by Division (Quarter) | 7 | |||
Combining Statements of Operations by Division | 8 | |||
Combining Balance Sheets by Division | 9 | |||
Short-Term and Long-Term Debt | 10 | |||
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION | ||||
Combined Statements of Operations | 11 | |||
Combining Statements of Operations | 12 | |||
Individual Annuities Sales Results and Account Values | 13 | |||
Individual Annuities Account Value Activity | 14 | |||
Individual Annuities Living Benefit Features | 15 | |||
Individual Annuities Death Benefit Features | 16 | |||
Retirement Segment Sales Results and Account Values | 17 | |||
Supplementary Revenue and Assets Under Management Information for Asset Management Segment | 18 | |||
Supplementary Assets Under Management and Assets Under Administration Information for Asset Management Segment | 19 | |||
U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION | ||||
Combined Statements of Operations | 20 | |||
Combining Statements of Operations | 21 | |||
Individual Life Annualized New Business Premiums, Account Value Activity, and Face Amount in Force | 22 | |||
Supplementary Information for Individual Life Insurance | 23 | |||
Supplementary Information for Group Insurance | 24 | |||
DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE | 25 | |||
INTERNATIONAL INSURANCE DIVISION | ||||
Combined Statements of Operations | 26 | |||
Combining Statements of Operations | 27 | |||
Sales Results and Supplementary Information | 28-29 | |||
INVESTMENT PORTFOLIO | ||||
Investment Portfolio Composition | 30 | |||
Financial Services Businesses Investment Portfolio Composition - Japanese Insurance Operations and Excluding Japanese Insurance Operations | 31 | |||
Financial Services Businesses Investment Results | 32 | |||
Financial Services Businesses Investment Results - Japanese Insurance Operations | 33 | |||
Financial Services Businesses Investment Results - Excluding Japanese Insurance Operations | 34 | |||
RECLASSIFIED STATEMENT OF OPERATIONS | 35-43 | |||
RECLASSIFIED SUPPLEMENTARY INFORMATION | 44-46 | |||
KEY DEFINITIONS AND FORMULAS | 47-49 | |||
RATINGS AND INVESTOR INFORMATION | 50 |
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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
This quarterly financial supplement reflects, for all periods presented, the following:
A discretionary change in accounting principle related to the Company’s pension plans. Under the revised accounting principle, the market related value of a plan’s fixed income assets used to calculate net periodic benefit cost is now reflected annually at fair value. The prior method calculated the market related value by recognizing changes in the fair value of a plan’s fixed income assets in a systematic and rational manner over 5 years. The Company adopted this revised accounting principle in the fourth quarter of 2012 with retrospective application for prior periods.
Results of the majority of the company’s international investments operations, formerly included in the International Insurance segment, have been reclassified and included in the Asset Management segment. This reflects the Company’s decision to align the management of these businesses.
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Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
Year-to-date | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||
Financial Services Businesses: | ||||||||||||||||||||||||||||||||
Pre-tax adjusted operating income (loss) by division: | ||||||||||||||||||||||||||||||||
2,180 | 2,038 | 7% | U.S. Retirement Solutions and Investment Management Division | 769 | 705 | 304 | 503 | 668 | ||||||||||||||||||||||||
400 | 645 | -38% | U.S. Individual Life and Group Insurance Division | 180 | 72 | 94 | 147 | 87 | ||||||||||||||||||||||||
2,704 | 2,263 | 19% | International Insurance Division | 502 | 597 | 678 | 782 | 647 | ||||||||||||||||||||||||
(1,335 | ) | (1,110 | ) | -20% | Corporate and other operations | (285 | ) | (326 | ) | (225 | ) | (413 | ) | (371 | ) | |||||||||||||||||
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3,949 | 3,836 | 3% | Total pre-tax adjusted operating income | 1,166 | 1,048 | 851 | 1,019 | 1,031 | ||||||||||||||||||||||||
991 | 991 | 0% | Income taxes, applicable to adjusted operating income | 311 | 283 | 205 | 270 | 233 | ||||||||||||||||||||||||
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2,958 | 2,845 | 4% | Financial Services Businesses after-tax adjusted operating income | 855 | 765 | 646 | 749 | 798 | ||||||||||||||||||||||||
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Reconciling items: | ||||||||||||||||||||||||||||||||
(2,809 | ) | 847 | -432% | Realized investment gains (losses), net, and related charges and adjustments | (596 | ) | (1,838 | ) | 2,030 | (1,303 | ) | (1,698 | ) | |||||||||||||||||||
610 | 223 | 174% | Investment gains on trading account assets supporting insurance liabilities, net | 53 | 234 | 4 | 264 | 108 | ||||||||||||||||||||||||
(540 | ) | (123 | ) | -339% | Change in experience-rated contractholder liabilities due to asset value changes | (47 | ) | (246 | ) | 54 | (254 | ) | (94 | ) | ||||||||||||||||||
(597 | ) | 101 | -691% | Divested businesses | 52 | 4 | 24 | (685 | ) | 60 | ||||||||||||||||||||||
(1 | ) | (189 | ) | 99% | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | 12 | 5 | 8 | (40 | ) | 26 | |||||||||||||||||||||
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(3,337 | ) | 859 | -488% | Total reconciling items, before income taxes | (526 | ) | (1,841 | ) | 2,120 | (2,018 | ) | (1,598 | ) | |||||||||||||||||||
(808 | ) | 429 | -288% | Income taxes, not applicable to adjusted operating income | (186 | ) | (113 | ) | 536 | (623 | ) | (608 | ) | |||||||||||||||||||
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(2,529 | ) | 430 | -688% | Total reconciling items, after income taxes | (340 | ) | (1,728 | ) | 1,584 | (1,395 | ) | (990 | ) | |||||||||||||||||||
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429 | 3,275 | -87% | Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures | 515 | (963 | ) | 2,230 | (646 | ) | (192 | ) | |||||||||||||||||||||
(18 | ) | 110 | -116% | Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests | (7 | ) | (4 | ) | (9 | ) | 20 | (25 | ) | |||||||||||||||||||
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411 | 3,385 | -88% | Income (loss) from continuing operations attributable to Prudential Financial, Inc. | 508 | (967 | ) | 2,221 | (626 | ) | (217 | ) | |||||||||||||||||||||
78 | 72 | 8% | Earnings attributable to noncontrolling interests | 8 | 11 | 15 | 25 | 27 | ||||||||||||||||||||||||
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489 | 3,457 | -86% | Income from continuing operations (after-tax) of Financial Services Businesses | 516 | (956 | ) | 2,236 | (601 | ) | (190 | ) | |||||||||||||||||||||
17 | 35 | -51% | Income (loss) from discontinued operations, net of taxes | 14 | 7 | 8 | (1 | ) | 3 | |||||||||||||||||||||||
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506 | 3,492 | -86% | Net income (loss) of Financial Services Businesses | 530 | (949 | ) | 2,244 | (602 | ) | (187 | ) | |||||||||||||||||||||
78 | 72 | 8% | Less: Income attributable to noncontrolling interests | 8 | 11 | 15 | 25 | 27 | ||||||||||||||||||||||||
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428 | 3,420 | -87% | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. | 522 | (960 | ) | 2,229 | (627 | ) | (214 | ) | |||||||||||||||||||||
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10.8% | 10.6% | Operating Return on Average Equity (based on adjusted operating income) | 12.2% | 11.4% | 9.5% | 10.6% | 11.6% | |||||||||||||||||||||||||
Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc: | ||||||||||||||||||||||||||||||||
428 | 3,420 | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above) | 522 | (960 | ) | 2,229 | (627 | ) | (214 | ) | ||||||||||||||||||||||
41 | 146 | Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc. | 82 | 21 | (5 | ) | 43 | (18 | ) | |||||||||||||||||||||||
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469 | 3,566 | Consolidated net income (loss) attributable to Prudential Financial, Inc. | 604 | (939 | ) | 2,224 | (584 | ) | (232 | ) | ||||||||||||||||||||||
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Page 1
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||
Earnings per share of Common Stock (diluted): (1) | ||||||||||||||||||||||||||||||
6.27 | 5.83 | Financial Services Businesses after-tax adjusted operating income | 1.78 | 1.61 | 1.38 | 1.59 | 1.69 | |||||||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||||||
(5.94 | ) | 1.73 | Realized investment gains (losses), net, and related charges and adjustments | (1.25 | ) | (3.85 | ) | 4.29 | (2.76 | ) | (3.61 | ) | ||||||||||||||||||
1.29 | 0.46 | Investment gains on trading account assets supporting insurance liabilities, net | 0.11 | 0.49 | 0.01 | 0.56 | 0.23 | |||||||||||||||||||||||
(1.14 | ) | (0.25 | ) | Change in experience-rated contractholder liabilities due to asset value changes | (0.10 | ) | (0.52 | ) | 0.11 | (0.54 | ) | (0.20 | ) | |||||||||||||||||
(1.26 | ) | 0.21 | Divested businesses | 0.11 | 0.01 | 0.05 | (1.45 | ) | 0.13 | |||||||||||||||||||||
0.05 | (0.01 | ) | Difference in earnings allocated to participating unvested share-based payment awards | — | 0.02 | (0.03 | ) | 0.02 | — | |||||||||||||||||||||
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(7.00 | ) | 2.14 | Total reconciling items, before income taxes | (1.13 | ) | (3.85 | ) | 4.43 | (4.17 | ) | (3.45 | ) | ||||||||||||||||||
(1.64 | ) | 1.05 | Income taxes, not applicable to adjusted operating income | (0.40 | ) | (0.20 | ) | 1.14 | (1.24 | ) | (1.28 | ) | ||||||||||||||||||
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(5.36 | ) | 1.09 | Total reconciling items, after income taxes | (0.73 | ) | (3.65 | ) | 3.29 | (2.93 | ) | (2.17 | ) | ||||||||||||||||||
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0.91 | 6.92 | Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc. | 1.05 | (2.04 | ) | 4.67 | (1.34 | ) | (0.48 | ) | ||||||||||||||||||||
0.03 | 0.07 | Income from discontinued operations, net of taxes | 0.03 | 0.01 | 0.02 | — | — | |||||||||||||||||||||||
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0.94 | 6.99 | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. | 1.08 | (2.03 | ) | 4.69 | (1.34 | ) | (0.48 | ) | ||||||||||||||||||||
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465.6 | 480.2 | Weighted average number of outstanding Common shares (basic) | 469.2 | 469.2 | 466.1 | 464.4 | 462.6 | |||||||||||||||||||||||
473.2 | 488.7 | Weighted average number of outstanding Common shares (diluted) (2) | 477.0 | 477.5 | 473.5 | 471.8 | 469.9 | |||||||||||||||||||||||
20 | 24 | Direct equity adjustments for earnings per share calculation | (1 | ) | 8 | 8 | 4 | — | ||||||||||||||||||||||
17 | 17 | Earnings related to interest, net of tax, on exchangeable surplus notes (2) | 4 | 4 | 5 | 4 | 4 | |||||||||||||||||||||||
Earnings allocated to participating unvested share-based payment awards for earnings per share calculation | ||||||||||||||||||||||||||||||
29 | 38 | Financial Services Businesses after-tax adjusted operating income | 11 | 8 | 6 | 8 | 7 | |||||||||||||||||||||||
7 | 45 | Income from continuing operations (after-tax) of Financial Services Businesses | 9 | — | 21 | — | 7 | |||||||||||||||||||||||
(1) | Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended March 31, 2012, September 30, 2012, and December 31, 2012 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment. |
(2) | In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued related to the exchangeable surplus notes assuming a hypothetical exchange, weighted for the period the notes are outstanding, is added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. For the twelve months ended December 31, 2012, the hypothetical impact of these shares was antidilutive and therefore excluded from the diluted earnings per share calculation for GAAP measures. The weighted average number of outstanding common shares used in the diluted earnings per share calculation for the twelve months ended December 31, 2012 for GAAP measures is 468.1 million. |
Page 2
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL HIGHLIGHTS
(in millions, except per share data)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
Financial Services Businesses Capitalization Data (1): | ||||||||||||||||||||||||||||
Senior Debt: | ||||||||||||||||||||||||||||
Short-term debt | 2,336 | 3,655 | 3,226 | 3,013 | 2,409 | |||||||||||||||||||||||
Long-term debt | 21,353 | 21,110 | 21,030 | 19,576 | 18,460 | |||||||||||||||||||||||
Junior Subordinated Long-Term Debt | 1,519 | 1,519 | 1,519 | 2,519 | 4,594 | |||||||||||||||||||||||
Attributed Equity: | ||||||||||||||||||||||||||||
Including accumulated other comprehensive income | 32,817 | 33,527 | 36,593 | 37,189 | 37,078 | |||||||||||||||||||||||
Excluding total accumulated other comprehensive income | 27,740 | 26,637 | 28,687 | 27,976 | 27,088 | |||||||||||||||||||||||
Total Capitalization: | ||||||||||||||||||||||||||||
Including accumulated other comprehensive income | 55,689 | 56,156 | 59,142 | 59,284 | 60,132 | |||||||||||||||||||||||
Excluding total accumulated other comprehensive income | 50,612 | 49,266 | 51,236 | 50,071 | 50,142 | |||||||||||||||||||||||
Book value per share of Common Stock: | ||||||||||||||||||||||||||||
Including accumulated other comprehensive income | 69.07 | 70.84 | 78.14 | 79.63 | 79.19 | |||||||||||||||||||||||
Excluding total accumulated other comprehensive income | 58.39 | 56.28 | 61.26 | 59.91 | 57.86 | |||||||||||||||||||||||
Number of diluted shares at end of period (2) | 475.1 | 473.3 | 468.3 | 467.0 | 468.2 | |||||||||||||||||||||||
Common Stock Price Range (based on closing price): | ||||||||||||||||||||||||||||
64.65 | 67.32 | High | 57.32 | 64.65 | 64.50 | 58.63 | 59.89 | |||||||||||||||||||||
44.74 | 43.91 | Low | 43.91 | 51.30 | 44.74 | 45.46 | 48.74 | |||||||||||||||||||||
53.33 | 50.12 | Close | 50.12 | 63.39 | 48.43 | 54.51 | 53.33 | |||||||||||||||||||||
Common Stock market capitalization (1) | 23,456 | 29,667 | 22,472 | 25,184 | 24,692 | |||||||||||||||||||||||
(1) | As of end of period. |
(2) | The number of diluted shares at end of period excludes the impact of exchangeable surplus notes due to the anti-dilutive impact of conversion at $98.78 per share. |
Page 3
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
OPERATIONS HIGHLIGHTS
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
Assets Under Management and Administration ($ billions) (1) (2): | ||||||||||||||||||||||||||||
Assets Under Management: | ||||||||||||||||||||||||||||
Managed by U.S. Retirement Solutions and Investment Management Division: | ||||||||||||||||||||||||||||
Asset Management Segment - Investment Management & Advisory Services | ||||||||||||||||||||||||||||
Institutional customers | 271.8 | 286.1 | 289.2 | 303.1 | 313.7 | |||||||||||||||||||||||
Retail customers | 119.3 | 125.1 | 131.7 | 133.9 | 138.7 | |||||||||||||||||||||||
General account | 326.7 | 321.3 | 331.4 | 340.7 | 374.6 | |||||||||||||||||||||||
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Total Investment Management and Advisory Services | 717.8 | 732.5 | 752.3 | 777.7 | 827.0 | |||||||||||||||||||||||
Non-proprietary assets under management | 152.2 | 176.8 | 176.2 | 193.0 | 196.8 | |||||||||||||||||||||||
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Total managed by U.S. Retirement Solutions and Investment Management Division | 870.0 | 909.3 | 928.5 | 970.7 | 1,023.8 | |||||||||||||||||||||||
Managed by U.S. Individual Life and Group Insurance Division | 13.8 | 14.8 | 13.6 | 13.7 | 16.4 | |||||||||||||||||||||||
Managed by International Insurance Division | 16.9 | 18.8 | 19.0 | 20.5 | 20.1 | |||||||||||||||||||||||
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Total assets under management | 900.7 | 942.9 | 961.1 | 1,004.9 | 1,060.3 | |||||||||||||||||||||||
Client assets under administration | 85.7 | 89.2 | 87.1 | 88.4 | 91.9 | |||||||||||||||||||||||
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Total assets under management and administration | 986.4 | 1,032.1 | 1,048.2 | 1,093.3 | 1,152.2 | |||||||||||||||||||||||
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Assets managed or administered for customers outside of the United States at end of period | 208.9 | 214.6 | 223.0 | 237.3 | 243.8 | |||||||||||||||||||||||
Distribution Representatives (1): | ||||||||||||||||||||||||||||
Prudential Agents | 2,529 | 2,603 | 2,607 | 2,662 | 2,615 | |||||||||||||||||||||||
International Life Planners | 6,792 | 6,819 | 6,806 | 6,929 | 7,058 | |||||||||||||||||||||||
Gibraltar Life Consultants | 12,791 | 12,219 | 12,031 | 11,683 | 11,333 | |||||||||||||||||||||||
55 | 54 | Prudential Agent productivity ($ thousands) | 64 | 45 | 54 | 58 | 64 | |||||||||||||||||||||
(1) | As of end of period. |
(2) | At fair market value. |
Page 4
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES
(in millions)
Year-to-date | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
62,083 | 21,038 | 195% | Premiums | 5,546 | 5,980 | 6,695 | 8,263 | 41,145 | ||||||||||||||||||||||||
4,597 | 4,032 | 14% | Policy charges and fee income | 1,033 | 1,078 | 1,085 | 1,251 | 1,183 | ||||||||||||||||||||||||
10,370 | 9,803 | 6% | Net investment income | 2,522 | 2,500 | 2,526 | 2,631 | 2,713 | ||||||||||||||||||||||||
4,083 | 4,060 | 1% | Asset management fees, commissions and other income | 1,034 | 937 | 941 | 1,107 | 1,098 | ||||||||||||||||||||||||
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81,133 | 38,933 | 108% | Total revenues | 10,135 | 10,495 | 11,247 | 13,252 | 46,139 | ||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
60,900 | 19,919 | 206% | Insurance and annuity benefits | 4,946 | 5,484 | 6,404 | 8,229 | 40,783 | ||||||||||||||||||||||||
3,804 | 3,756 | 1% | Interest credited to policyholders’ account balances | 953 | 948 | 971 | 941 | 944 | ||||||||||||||||||||||||
1,243 | 1,163 | 7% | Interest expense | 299 | 308 | 311 | 311 | 313 | ||||||||||||||||||||||||
(3,534 | ) | (3,027 | ) | -17% | Deferral of acquisition costs | (761 | ) | (809 | ) | (911 | ) | (882 | ) | (932 | ) | |||||||||||||||||
1,966 | 1,565 | 26% | Amortization of acquisition costs | 378 | 406 | 513 | 466 | 581 | ||||||||||||||||||||||||
12,805 | 11,721 | 9% | General and administrative expenses | 3,154 | 3,110 | 3,108 | 3,168 | 3,419 | ||||||||||||||||||||||||
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77,184 | 35,097 | 120% | Total benefits and expenses | 8,969 | 9,447 | 10,396 | 12,233 | 45,108 | ||||||||||||||||||||||||
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3,949 | 3,836 | 3% | Adjusted operating income before income taxes | 1,166 | 1,048 | 851 | 1,019 | 1,031 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||||||||
(3,666 | ) | 2,503 | -246% | Realized investment gains (losses), net, and related adjustments | (672 | ) | (2,716 | ) | 3,058 | (1,951 | ) | (2,057 | ) | |||||||||||||||||||
857 | (1,656 | ) | 152% | Related charges | 76 | 878 | (1,028 | ) | 648 | 359 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(2,809 | ) | 847 | -432% | Total realized investment gains (losses), net, and related charges and adjustments | (596 | ) | (1,838 | ) | 2,030 | (1,303 | ) | (1,698 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
610 | 223 | 174% | Investment gains on trading account assets supporting insurance liabilities, net | 53 | 234 | 4 | 264 | 108 | ||||||||||||||||||||||||
(540 | ) | (123 | ) | -339% | Change in experience-rated contractholder liabilities due to asset value changes | (47 | ) | (246 | ) | 54 | (254 | ) | (94 | ) | ||||||||||||||||||
(597 | ) | 101 | -691% | Divested businesses | 52 | 4 | 24 | (685 | ) | 60 | ||||||||||||||||||||||
(1 | ) | (189 | ) | 99% | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | 12 | 5 | 8 | (40 | ) | 26 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(3,337 | ) | 859 | -488% | Total reconciling items, before income taxes | (526 | ) | (1,841 | ) | 2,120 | (2,018 | ) | (1,598 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
612 | 4,695 | -87% | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 640 | (793 | ) | 2,971 | (999 | ) | (567 | ) | |||||||||||||||||||||
183 | 1,420 | -87% | Income tax expense (benefit) | 125 | 170 | 741 | (353 | ) | (375 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
429 | 3,275 | -87% | Income (loss) from continuing operations before equity in earnings of operating joint ventures | 515 | (963 | ) | 2,230 | (646 | ) | (192 | ) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests. |
Page 5
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
COMBINED BALANCE SHEETS - FINANCIAL SERVICES BUSINESSES
(in millions)
12/31/2011 | 03/31/2012 | 06/30/2012 | 09/30/2012 | 12/31/2012 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturities, available for sale, at fair value (amortized cost $197,784; $195,582; $202,699; $208,474; $236,517) | 208,132 | 208,419 | 217,232 | 226,015 | 254,917 | |||||||||||||||
Fixed maturities, held to maturity, at amortized cost (fair value $5,354; $5,006; $5,041; $5,018; $4,511) | 5,107 | 4,775 | 4,771 | 4,720 | 4,268 | |||||||||||||||
Trading account assets supporting insurance liabilities, at fair value | 19,481 | 19,679 | 19,729 | 20,132 | 20,590 | |||||||||||||||
Other trading account assets, at fair value | 5,228 | 4,860 | 5,349 | 5,610 | 6,053 | |||||||||||||||
Equity securities, available for sale, at fair value (cost $4,165; $4,041; $4,188; $4,253; $4,302) | 4,413 | 4,629 | 4,651 | 4,821 | 5,052 | |||||||||||||||
Commercial mortgage and other loans | 26,391 | 26,205 | 26,643 | 27,057 | 27,125 | |||||||||||||||
Policy loans | 6,263 | 6,191 | 6,291 | 6,551 | 6,455 | |||||||||||||||
Other long-term investments | 5,830 | 5,517 | 5,655 | 6,133 | 8,016 | |||||||||||||||
Short-term investments | 8,593 | 7,196 | 8,253 | 7,825 | 5,186 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments | 289,438 | 287,471 | 298,574 | 308,864 | 337,662 | |||||||||||||||
Cash and cash equivalents | 13,201 | 12,980 | 13,390 | 13,102 | 17,546 | |||||||||||||||
Accrued investment income | 2,177 | 2,147 | 2,180 | 2,230 | 2,534 | |||||||||||||||
Deferred policy acquisition costs | 12,056 | 13,008 | 12,612 | 13,250 | 13,688 | |||||||||||||||
Value of business acquired | 3,845 | 3,553 | 3,510 | 3,516 | 3,248 | |||||||||||||||
Other assets | 11,903 | 12,109 | 11,496 | 11,901 | 11,376 | |||||||||||||||
Separate account assets | 218,380 | 236,567 | 235,268 | 247,510 | 253,254 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 551,000 | 567,835 | 577,030 | 600,373 | 639,308 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Future policy benefits | 119,248 | 116,721 | 123,555 | 132,209 | 165,212 | |||||||||||||||
Policyholders’ account balances | 129,074 | 128,038 | 128,423 | 130,227 | 128,987 | |||||||||||||||
Securities sold under agreements to repurchase | 3,118 | 3,806 | 4,656 | 4,662 | 3,436 | |||||||||||||||
Cash collateral for loaned securities | 2,254 | 2,226 | 2,247 | 2,442 | 2,864 | |||||||||||||||
Income taxes | 6,993 | 8,097 | 9,081 | 9,323 | 9,058 | |||||||||||||||
Senior short-term debt | 2,336 | 3,655 | 3,226 | 3,013 | 2,409 | |||||||||||||||
Senior long-term debt | 21,353 | 21,110 | 21,030 | 19,576 | 18,460 | |||||||||||||||
Junior subordinated long-term debt | 1,519 | 1,519 | 1,519 | 2,519 | 4,594 | |||||||||||||||
Notes issued by consolidated variable interest entities | 524 | 537 | 537 | 636 | 1,577 | |||||||||||||||
Other liabilities | 12,796 | 11,436 | 10,286 | 10,376 | 11,663 | |||||||||||||||
Separate account liabilities | 218,380 | 236,567 | 235,268 | 247,510 | 253,254 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 517,595 | 533,712 | 539,828 | 562,493 | 601,514 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Attributed Equity: | ||||||||||||||||||||
Accumulated other comprehensive income | 5,077 | 6,890 | 7,906 | 9,213 | 9,990 | |||||||||||||||
Other attributed equity | 27,740 | 26,637 | 28,687 | 27,976 | 27,088 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total attributed equity | 32,817 | 33,527 | 36,593 | 37,189 | 37,078 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Noncontrolling Interest | 588 | 596 | 609 | 691 | 716 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Equity | 33,405 | 34,123 | 37,202 | 37,880 | 37,794 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities and equity | 551,000 | 567,835 | 577,030 | 600,373 | 639,308 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Page 6
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION
(in millions)
Quarter Ended December 31, 2012 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Revenues (1): | ||||||||||||||||||||
Premiums | 41,145 | 31,979 | 1,274 | 7,901 | (9 | ) | ||||||||||||||
Policy charges and fee income | 1,183 | 598 | 439 | 156 | (10 | ) | ||||||||||||||
Net investment income | 2,713 | 1,096 | 408 | 1,105 | 104 | |||||||||||||||
Asset management fees, commissions and other income | 1,098 | 1,121 | 117 | 47 | (187 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenues | 46,139 | 34,794 | 2,238 | 9,209 | (102 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||
Insurance and annuity benefits | 40,783 | 32,292 | 1,411 | 7,068 | 12 | |||||||||||||||
Interest credited to policyholders’ account balances | 944 | 531 | 146 | 271 | (4 | ) | ||||||||||||||
Interest expense | 313 | 33 | 83 | 2 | 195 | |||||||||||||||
Deferral of acquisition costs | (932 | ) | (233 | ) | (199 | ) | (518 | ) | 18 | |||||||||||
Amortization of acquisition costs | 581 | 166 | 80 | 350 | (15 | ) | ||||||||||||||
General and administrative expenses | 3,419 | 1,337 | 630 | 1,389 | 63 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total benefits and expenses | 45,108 | 34,126 | 2,151 | 8,562 | 269 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted operating income (loss) before income taxes | 1,031 | 668 | 87 | 647 | (371 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Quarter Ended December 31, 2011 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Revenues (1): | ||||||||||||||||||||
Premiums | 5,546 | 257 | 1,276 | 4,018 | (5 | ) | ||||||||||||||
Policy charges and fee income | 1,033 | 512 | 384 | 146 | (9 | ) | ||||||||||||||
Net investment income | 2,522 | 1,011 | 389 | 1,018 | 104 | |||||||||||||||
Asset management fees, commissions and other income | 1,034 | 1,081 | 104 | (4 | ) | (147 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenues | 10,135 | 2,861 | 2,153 | 5,178 | (57 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||
Insurance and annuity benefits | 4,946 | 416 | 1,367 | 3,175 | (12 | ) | ||||||||||||||
Interest credited to policyholders’ account balances | 953 | 549 | 135 | 276 | (7 | ) | ||||||||||||||
Interest expense | 299 | 35 | 73 | — | 191 | |||||||||||||||
Deferral of acquisition costs | (761 | ) | (240 | ) | (85 | ) | (450 | ) | 14 | |||||||||||
Amortization of acquisition costs | 378 | 98 | 49 | 240 | (9 | ) | ||||||||||||||
General and administrative expenses | 3,154 | 1,234 | 434 | 1,435 | 51 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total benefits and expenses | 8,969 | 2,092 | 1,973 | 4,676 | 228 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted operating income (loss) before income taxes | 1,166 | 769 | 180 | 502 | (285 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests. |
Page 7
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL SERVICES BUSINESSES COMBINING STATEMENTS OF OPERATIONS - BY DIVISION
(in millions)
Twelve Months Ended December 31, 2012 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Revenues (1): | ||||||||||||||||||||
Premiums | 62,083 | 32,504 | 5,128 | 24,484 | (33 | ) | ||||||||||||||
Policy charges and fee income | 4,597 | 2,282 | 1,756 | 597 | (38 | ) | ||||||||||||||
Net investment income | 10,370 | 4,080 | 1,619 | 4,268 | 403 | |||||||||||||||
Asset management fees, commissions and other income | 4,083 | 4,110 | 465 | 237 | (729 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenues | 81,133 | 42,976 | 8,968 | 29,586 | (397 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||
Insurance and annuity benefits | 60,900 | 33,890 | 5,769 | 21,105 | 136 | |||||||||||||||
Interest credited to policyholders’ account balances | 3,804 | 2,147 | 557 | 1,122 | (22 | ) | ||||||||||||||
Interest expense | 1,243 | 144 | 323 | 3 | 773 | |||||||||||||||
Deferral of acquisition costs | (3,534 | ) | (1,091 | ) | (491 | ) | (2,024 | ) | 72 | |||||||||||
Amortization of acquisition costs | 1,966 | 411 | 424 | 1,173 | (42 | ) | ||||||||||||||
General and administrative expenses | 12,805 | 5,295 | 1,986 | 5,503 | 21 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total benefits and expenses | 77,184 | 40,796 | 8,568 | 26,882 | 938 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted operating income (loss) before income taxes | 3,949 | 2,180 | 400 | 2,704 | (1,335 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Twelve Months Ended December 31, 2011 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Revenues (1): | ||||||||||||||||||||
Premiums | 21,038 | 901 | 5,144 | 15,015 | (22 | ) | ||||||||||||||
Policy charges and fee income | 4,032 | 2,043 | 1,472 | 552 | (35 | ) | ||||||||||||||
Net investment income | 9,803 | 4,086 | 1,553 | 3,754 | 410 | |||||||||||||||
Asset management fees, commissions and other income | 4,060 | 4,010 | 337 | 246 | (533 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total revenues | 38,933 | 11,040 | 8,506 | 19,567 | (180 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||
Insurance and annuity benefits | 19,919 | 2,070 | 5,618 | 12,085 | 146 | |||||||||||||||
Interest credited to policyholders’ account balances | 3,756 | 2,285 | 527 | 978 | (34 | ) | ||||||||||||||
Interest expense | 1,163 | 139 | 214 | 1 | 809 | |||||||||||||||
Deferral of acquisition costs | (3,027 | ) | (1,093 | ) | (317 | ) | (1,684 | ) | 67 | |||||||||||
Amortization of acquisition costs | 1,565 | 602 | 141 | 880 | (58 | ) | ||||||||||||||
General and administrative expenses | 11,721 | 4,999 | 1,678 | 5,044 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total benefits and expenses | 35,097 | 9,002 | 7,861 | 17,304 | 930 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Adjusted operating income (loss) before income taxes | 3,836 | 2,038 | 645 | 2,263 | (1,110 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests. |
Page 8
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
FINANCIAL SERVICES BUSINESSES COMBINING BALANCE SHEETS - BY DIVISION
(in millions)
As of December 31, 2012 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Assets: | ||||||||||||||||||||
Total investments | 337,662 | 124,654 | 36,648 | 164,144 | 12,216 | |||||||||||||||
Deferred policy acquisition costs | 13,688 | 4,036 | 3,298 | 6,589 | (235 | ) | ||||||||||||||
Other assets | 34,704 | 13,958 | 6,422 | 11,506 | 2,818 | |||||||||||||||
Separate account assets | 253,254 | 214,416 | 39,757 | 1,555 | (2,474 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 639,308 | 357,064 | 86,125 | 183,794 | 12,325 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Future policy benefits | 165,212 | 54,799 | 10,252 | 96,874 | 3,287 | |||||||||||||||
Policyholders’ account balances | 128,987 | 56,282 | 18,518 | 54,172 | 15 | |||||||||||||||
Debt | 25,463 | 4,969 | 8,428 | 38 | 12,028 | |||||||||||||||
Other liabilities | 28,598 | 9,308 | 5,172 | 13,016 | 1,102 | |||||||||||||||
Separate account liabilities | 253,254 | 214,416 | 39,757 | 1,555 | (2,474 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 601,514 | 339,774 | 82,127 | 165,655 | 13,958 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Attributed Equity: | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | 9,990 | 2,541 | 1,728 | 7,359 | (1,638 | ) | ||||||||||||||
Other attributed equity | 27,088 | 14,023 | 2,270 | 10,776 | 19 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total attributed equity | 37,078 | 16,564 | 3,998 | 18,135 | (1,619 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Noncontrolling Interest | 716 | 726 | — | 4 | (14 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Equity | 37,794 | 17,290 | 3,998 | 18,139 | (1,633 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities and equity | 639,308 | 357,064 | 86,125 | 183,794 | 12,325 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
As of December 31, 2011 | ||||||||||||||||||||
Total Financial Services Businesses | U.S. Retirement Solutions & Investment Management Division | U.S. Individual Life & Group Insurance Division | International Insurance Division | Corporate and Other Operations | ||||||||||||||||
Assets: | ||||||||||||||||||||
Total investments | 289,438 | 97,052 | 33,282 | 148,900 | 10,204 | |||||||||||||||
Deferred policy acquisition costs | 12,056 | 2,587 | 3,324 | 6,141 | 4 | |||||||||||||||
Other assets | 31,126 | 9,589 | 4,546 | 12,369 | 4,622 | |||||||||||||||
Separate account assets | 218,380 | 183,785 | 35,665 | 1,118 | (2,188 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | 551,000 | 293,013 | 76,817 | 168,528 | 12,642 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Future policy benefits | 119,248 | 20,451 | 9,441 | 87,199 | 2,157 | |||||||||||||||
Policyholders’ account balances | 129,074 | 57,878 | 16,806 | 54,908 | (518 | ) | ||||||||||||||
Debt | 25,208 | 4,722 | 7,047 | — | 13,439 | |||||||||||||||
Other liabilities | 25,685 | 10,375 | 3,623 | 10,286 | 1,401 | |||||||||||||||
Separate account liabilities | 218,380 | 183,785 | 35,665 | 1,118 | (2,188 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities | 517,595 | 277,211 | 72,582 | 153,511 | 14,291 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Attributed Equity: | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | 5,077 | 2,027 | 1,333 | 3,128 | (1,411 | ) | ||||||||||||||
Other attributed equity | 27,740 | 13,143 | 2,902 | 11,846 | (151 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total attributed equity | 32,817 | 15,170 | 4,235 | 14,974 | (1,562 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Noncontrolling Interest | 588 | 632 | — | 43 | (87 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Equity | 33,405 | 15,802 | 4,235 | 15,017 | (1,649 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total liabilities and equity | 551,000 | 293,013 | 76,817 | 168,528 | 12,642 | |||||||||||||||
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|
|
|
|
|
|
|
|
|
Page 9
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
SHORT-TERM AND LONG-TERM DEBT
(in millions)
��
As of December 31, 2012 | As of December 31, 2011 | |||||||||||||||||||||||||||||||
Senior debt | Junior Subordinated Long-term Debt | Total Debt |
Senior debt | Junior Subordinated Long-term Debt | Total Debt | |||||||||||||||||||||||||||
Short-term Debt | Long-term Debt | Short-term Debt | Long-term Debt | |||||||||||||||||||||||||||||
Financial Services Businesses | ||||||||||||||||||||||||||||||||
Borrowings by use of proceeds: | ||||||||||||||||||||||||||||||||
Capital Debt | 668 | 5,381 | 4,594 | 10,643 | 450 | 9,255 | 1,519 | 11,224 | ||||||||||||||||||||||||
Operating Debt - Investment related | 1,258 | 9,203 | — | 10,461 | 926 | 7,971 | — | 8,897 | ||||||||||||||||||||||||
Operating Debt - Specified businesses | 483 | 3,876 | — | 4,359 | 960 | 4,127 | — | 5,087 | ||||||||||||||||||||||||
Limited recourse and non-recourse borrowing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total debt - Financial Services Businesses | 2,409 | 18,460 | 4,594 | 25,463 | 2,336 | 21,353 | 1,519 | 25,208 | ||||||||||||||||||||||||
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| |||||||||||||||||
Closed Block Business | ||||||||||||||||||||||||||||||||
Investment related | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Limited recourse and non-recourse borrowing | 75 | 1,675 | — | 1,750 | — | 1,750 | — | 1,750 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total debt | 75 | 1,675 | — | 1,750 | — | 1,750 | — | 1,750 | ||||||||||||||||||||||||
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|
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| |||||||||||||||||
As of December 31, 2012 | As of December 31, 2011 | |||||||||||||||||||||||||||||||
Prudential Financial, Inc. | The Prudential Insurance Co. of America (1)(2) | Other Affiliates | Total | Prudential Financial, Inc. | The Prudential Insurance Co. of America (1)(2) | Other Affiliates | Total | |||||||||||||||||||||||||
Financial Services Businesses | ||||||||||||||||||||||||||||||||
Borrowings by sources: | ||||||||||||||||||||||||||||||||
Capital Debt | 9,149 | 1,042 | 452 | 10,643 | 9,662 | 1,040 | 522 | 11,224 | ||||||||||||||||||||||||
Operating Debt - Investment related | 6,955 | 293 | 3,213 | 10,461 | 4,970 | 710 | 3,217 | 8,897 | ||||||||||||||||||||||||
Operating Debt - Specified businesses | 2,740 | 1,468 | 151 | 4,359 | 3,920 | 1,157 | 10 | 5,087 | ||||||||||||||||||||||||
Limited recourse and non-recourse borrowing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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|
|
|
|
|
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|
|
| |||||||||||||||||
Total debt - Financial Services Businesses | 18,844 | 2,803 | 3,816 | 25,463 | 18,552 | 2,907 | 3,749 | 25,208 | ||||||||||||||||||||||||
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|
(1) | Includes Prudential Funding, LLC. |
(2) | Capital debt at Prudential Insurance Co. of America includes $940 million of Surplus Notes for December 31, 2012 and December 31, 2011 respectively. |
Page 10
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
(in millions)
Year-to-date | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
32,504 | 901 | 3508% | Premiums | 257 | 116 | 248 | 161 | 31,979 | ||||||||||||||||||||||||
2,282 | 2,043 | 12% | Policy charges and fee income | 512 | 544 | 556 | 584 | 598 | ||||||||||||||||||||||||
4,080 | 4,086 | 0% | Net investment income | 1,011 | 999 | 983 | 1,002 | 1,096 | ||||||||||||||||||||||||
4,110 | 4,010 | 2% | Asset management fees, commissions and other income | 1,081 | 973 | 929 | 1,087 | 1,121 | ||||||||||||||||||||||||
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|
| |||||||||||||||||||
42,976 | 11,040 | 289% | Total revenues | 2,861 | 2,632 | 2,716 | 2,834 | 34,794 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
33,890 | 2,070 | 1537% | Insurance and annuity benefits | 416 | 251 | 611 | 736 | 32,292 | ||||||||||||||||||||||||
2,147 | 2,285 | -6% | Interest credited to policyholders’ account balances | 549 | 544 | 568 | 504 | 531 | ||||||||||||||||||||||||
144 | 139 | 4% | Interest expense | 35 | 35 | 39 | 37 | 33 | ||||||||||||||||||||||||
(1,091 | ) | (1,093 | ) | 0% | Deferral of acquisition costs | (240 | ) | (265 | ) | (288 | ) | (305 | ) | (233 | ) | |||||||||||||||||
411 | 602 | -32% | Amortization of acquisition costs | 98 | 97 | 168 | (20 | ) | 166 | |||||||||||||||||||||||
5,295 | 4,999 | 6% | General and administrative expenses | 1,234 | 1,265 | 1,314 | 1,379 | 1,337 | ||||||||||||||||||||||||
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|
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|
|
|
|
|
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| |||||||||||||||||||
40,796 | 9,002 | 353% | Total benefits and expenses | 2,092 | 1,927 | 2,412 | 2,331 | 34,126 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
2,180 | 2,038 | 7% | Adjusted operating income before income taxes | 769 | 705 | 304 | 503 | 668 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 11
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINING STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
(in millions)
Twelve Months Ended December 31, 2012 | Quarter Ended December 31, 2012 | |||||||||||||||||||||||||||||||
Total U.S. Retirement Solutions & Investment Management Division | Individual Annuities | Retirement | Asset Management | Total U.S. Retirement Solutions & Investment Management Division | Individual Annuities | Retirement | Asset Management | |||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
Premiums | 32,504 | 102 | 32,402 | — | 31,979 | 24 | 31,955 | — | ||||||||||||||||||||||||
Policy charges and fee income | 2,282 | 2,080 | 202 | — | 598 | 549 | 49 | — | ||||||||||||||||||||||||
Net investment income | 4,080 | 770 | 3,203 | 107 | 1,096 | 185 | 880 | 31 | ||||||||||||||||||||||||
Asset management fees, commissions and other income | 4,110 | 1,031 | 788 | 2,291 | 1,121 | 281 | 200 | 640 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total revenues | 42,976 | 3,983 | 36,595 | 2,398 | 34,794 | 1,039 | 33,084 | 671 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
Insurance and annuity benefits | 33,890 | 573 | 33,317 | — | 32,292 | 55 | 32,237 | — | ||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 2,147 | 452 | 1,695 | — | 531 | 121 | 410 | — | ||||||||||||||||||||||||
Interest expense | 144 | 109 | 20 | 15 | 33 | 24 | 5 | 4 | ||||||||||||||||||||||||
Deferral of acquisition costs | (1,091 | ) | (1,016 | ) | (49 | ) | (26 | ) | (233 | ) | (200 | ) | (27 | ) | (6 | ) | ||||||||||||||||
Amortization of acquisition costs | 411 | 338 | 49 | 24 | 166 | 131 | 29 | 6 | ||||||||||||||||||||||||
Securities operations non-interest expenses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
General and administrative expenses | 5,295 | 2,488 | 925 | 1,882 | 1,337 | 604 | 205 | 528 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total benefits and expenses | 40,796 | 2,944 | 35,957 | 1,895 | 34,126 | 735 | 32,859 | 532 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Adjusted operating income before income taxes | 2,180 | 1,039 | 638 | 503 | 668 | 304 | 225 | 139 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Twelve Months Ended December 31, 2011 | Quarter Ended December 31, 2011 | |||||||||||||||||||||||||||||||
Total U.S. Retirement Solutions & Investment Management Division | Individual Annuities | Retirement | Asset Management | Total U.S. Retirement Solutions & Investment Management Division | Individual Annuities | Retirement | Asset Management | |||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
Premiums | 901 | 121 | 780 | — | 257 | 24 | 233 | — | ||||||||||||||||||||||||
Policy charges and fee income | 2,043 | 1,850 | 193 | — | 512 | 463 | 49 | — | ||||||||||||||||||||||||
Net investment income | 4,086 | 790 | 3,178 | 118 | 1,011 | 197 | 782 | 32 | ||||||||||||||||||||||||
Asset management fees, commissions and other income | 4,010 | 877 | 720 | 2,413 | 1,081 | 218 | 182 | 681 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total revenues | 11,040 | 3,638 | 4,871 | 2,531 | 2,861 | 902 | 1,246 | 713 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
Insurance and annuity benefits | 2,070 | 476 | 1,594 | — | 416 | (25 | ) | 441 | — | |||||||||||||||||||||||
Interest credited to policyholders’ account balances | 2,285 | 570 | 1,715 | — | 549 | 116 | 433 | — | ||||||||||||||||||||||||
Interest expense | 139 | 112 | 14 | 13 | 35 | 29 | 3 | 3 | ||||||||||||||||||||||||
Deferral of acquisition costs | (1,093 | ) | (1,038 | ) | (32 | ) | (23 | ) | (240 | ) | (228 | ) | (7 | ) | (5 | ) | ||||||||||||||||
Amortization of acquisition costs | 602 | 536 | 41 | 25 | 98 | 89 | 3 | 6 | ||||||||||||||||||||||||
Securities operations non-interest expenses | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
General and administrative expenses | 4,999 | 2,320 | 945 | 1,734 | 1,234 | 548 | 233 | 453 | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total benefits and expenses | 9,002 | 2,976 | 4,277 | 1,749 | 2,092 | 529 | 1,106 | 457 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Adjusted operating income before income taxes | 2,038 | 662 | 594 | 782 | 769 | 373 | 140 | 256 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 12
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES SALES RESULTS AND ACCOUNT VALUES
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
SALES AND ACCOUNT VALUES: | ||||||||||||||||||||||||||||
Variable Annuities: | ||||||||||||||||||||||||||||
109,743 | 102,348 | Beginning total account value | 102,879 | 109,743 | 120,276 | 120,326 | 128,949 | |||||||||||||||||||||
19,977 | 20,224 | Sales | 4,406 | 4,943 | 5,344 | 5,912 | 3,778 | |||||||||||||||||||||
(6,646 | ) | (7,049 | ) | Surrenders and withdrawals | (1,526 | ) | (1,676 | ) | (1,626 | ) | (1,579 | ) | (1,765 | ) | ||||||||||||||
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|
|
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|
|
|
|
|
| |||||||||||||||
13,331 | 13,175 | Net sales | 2,880 | 3,267 | 3,718 | 4,333 | 2,013 | |||||||||||||||||||||
(1,169 | ) | (1,092 | ) | Benefit payments | (276 | ) | (285 | ) | (288 | ) | (283 | ) | (313 | ) | ||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
12,162 | 12,083 | Net flows | 2,604 | 2,982 | 3,430 | 4,050 | 1,700 | |||||||||||||||||||||
12,380 | (2,450 | ) | Change in market value, interest credited, and other | 4,835 | 8,171 | (2,742 | ) | 5,264 | 1,687 | |||||||||||||||||||
(2,677 | ) | (2,238 | ) | Policy charges | (575 | ) | (620 | ) | (638 | ) | (691 | ) | (728 | ) | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
131,608 | 109,743 | Ending total account value | 109,743 | 120,276 | 120,326 | 128,949 | 131,608 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Fixed Annuities: | ||||||||||||||||||||||||||||
3,792 | 3,837 | Beginning total account value | 3,810 | 3,792 | 3,778 | 3,768 | 3,756 | |||||||||||||||||||||
55 | 69 | Sales | 16 | 16 | 14 | 14 | 11 | |||||||||||||||||||||
(160 | ) | (183 | ) | Surrenders and withdrawals | (44 | ) | (43 | ) | (34 | ) | (35 | ) | (48 | ) | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(105 | ) | (114 | ) | Net redemptions | (28 | ) | (27 | ) | (20 | ) | (21 | ) | (37 | ) | ||||||||||||||
(281 | ) | (276 | ) | Benefit payments | (77 | ) | (83 | ) | (62 | ) | (68 | ) | (68 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(386 | ) | (390 | ) | Net flows | (105 | ) | (110 | ) | (82 | ) | (89 | ) | (105 | ) | ||||||||||||||
330 | 346 | Interest credited and other | 87 | 96 | 73 | 78 | 83 | |||||||||||||||||||||
(2 | ) | (1 | ) | Policy charges | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||
|
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|
|
|
|
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|
|
|
|
|
|
| |||||||||||||||
3,734 | 3,792 | Ending total account value | 3,792 | 3,778 | 3,768 | 3,756 | 3,734 | |||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||
SALES BY DISTRIBUTION CHANNEL: | ||||||||||||||||||||||||||||
Variable and Fixed Annuities (1): | ||||||||||||||||||||||||||||
3,023 | 3,223 | Insurance Agents | 732 | 764 | 799 | 903 | 557 | |||||||||||||||||||||
4,932 | 4,563 | Wirehouses | 1,180 | 1,233 | 1,299 | 1,471 | 929 | |||||||||||||||||||||
8,808 | 9,140 | Independent Financial Planners | 1,822 | 2,103 | 2,338 | 2,706 | 1,661 | |||||||||||||||||||||
3,269 | 3,367 | Bank Distribution | 688 | 859 | 922 | 846 | 642 | |||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
20,032 | 20,293 | Total | 4,422 | 4,959 | 5,358 | 5,926 | 3,789 | |||||||||||||||||||||
(1) | Amounts represent gross sales. |
Page 13
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES ACCOUNT VALUE ACTIVITY
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
INDIVIDUAL ANNUITIES: | ||||||||||||||||||||||||||||
Account Values in General Account (1): | ||||||||||||||||||||||||||||
12,830 | 13,223 | Beginning balance | 12,971 | 12,830 | 12,277 | 12,355 | 11,929 | |||||||||||||||||||||
2,360 | 1,906 | Premiums and deposits | 505 | 548 | 662 | 674 | 476 | |||||||||||||||||||||
(1,058 | ) | (1,114 | ) | Surrenders and withdrawals | (179 | ) | (278 | ) | (253 | ) | (239 | ) | (288 | ) | ||||||||||||||
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|
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|
|
|
|
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|
| |||||||||||||||
1,302 | 792 | Net sales | 326 | 270 | 409 | 435 | 188 | |||||||||||||||||||||
(357 | ) | (347 | ) | Benefit payments | (92 | ) | (101 | ) | (84 | ) | (86 | ) | (86 | ) | ||||||||||||||
|
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|
|
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|
|
|
|
|
|
| |||||||||||||||
945 | 445 | Net flows | 234 | 169 | 325 | 349 | 102 | |||||||||||||||||||||
374 | 412 | Interest credited and other | 104 | 96 | 111 | 97 | 70 | |||||||||||||||||||||
(2,583 | ) | (1,249 | ) | Net transfers to separate account | (479 | ) | (818 | ) | (357 | ) | (871 | ) | (537 | ) | ||||||||||||||
(2 | ) | (1 | ) | Policy charges | — | — | (1 | ) | (1 | ) | — | |||||||||||||||||
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|
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|
|
|
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|
|
| |||||||||||||||
11,564 | 12,830 | Ending balance | 12,830 | 12,277 | 12,355 | 11,929 | 11,564 | |||||||||||||||||||||
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|
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|
|
|
|
|
|
|
| |||||||||||||||
Account Values in Separate Account: | ||||||||||||||||||||||||||||
100,705 | 92,962 | Beginning balance | 93,718 | 100,705 | 111,777 | 111,739 | 120,776 | |||||||||||||||||||||
17,672 | 18,387 | Premiums and deposits | 3,917 | 4,411 | 4,696 | 5,252 | 3,313 | |||||||||||||||||||||
(5,748 | ) | (6,118 | ) | Surrenders and withdrawals | (1,391 | ) | (1,441 | ) | (1,407 | ) | (1,375 | ) | (1,525 | ) | ||||||||||||||
|
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|
|
|
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|
|
|
|
|
|
| |||||||||||||||
11,924 | 12,269 | Net sales | 2,526 | 2,970 | 3,289 | 3,877 | 1,788 | |||||||||||||||||||||
(1,093 | ) | (1,021 | ) | Benefit payments | (261 | ) | (267 | ) | (266 | ) | (265 | ) | (295 | ) | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
10,831 | 11,248 | Net flows | 2,265 | 2,703 | 3,023 | 3,612 | 1,493 | |||||||||||||||||||||
12,336 | (2,516 | ) | Change in market value, interest credited and other | 4,818 | 8,171 | (2,780 | ) | 5,245 | 1,700 | |||||||||||||||||||
2,583 | 1,249 | Net transfers from general account | 479 | 818 | 357 | 871 | 537 | |||||||||||||||||||||
(2,677 | ) | (2,238 | ) | Policy charges | (575 | ) | (620 | ) | (638 | ) | (691 | ) | (728 | ) | ||||||||||||||
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|
| |||||||||||||||
123,778 | 100,705 | Ending balance | 100,705 | 111,777 | 111,739 | 120,776 | 123,778 | |||||||||||||||||||||
(1) | Premiums and deposits, and surrenders and withdrawals, are classified within the general account and separate account for purposes of this presentation based on the allocation of customer funds. For example, premiums allocated by customers to separate account investments at the time of sale, while remitted through the company’s general account, are shown as separate account premium in this display, rather than as general account premium and transfers to the separate account. |
Page 14
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES LIVING BENEFIT FEATURES
(in millions)
2011 | 2012 | |||||||||||||||||||
4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||
LIVING BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1): | ||||||||||||||||||||
Variable Annuity Account Values with Living Benefit Features | ||||||||||||||||||||
Guaranteed minimum accumulation benefits | 8,771 | 8,724 | 8,368 | 8,224 | 7,947 | |||||||||||||||
Guaranteed minimum withdrawal benefits | 1,031 | 1,066 | 984 | 980 | 947 | |||||||||||||||
Guaranteed minimum income benefits | 3,685 | 3,874 | 3,603 | 3,631 | 3,556 | |||||||||||||||
Guaranteed minimum withdrawal & income benefits | 72,154 | 81,156 | 83,110 | 91,366 | 94,804 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 85,641 | 94,820 | 96,065 | 104,201 | 107,254 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Living Benefit Features Account Values by Product Design Type | ||||||||||||||||||||
Account Values with Auto-Rebalancing Feature | 70,341 | 78,622 | 80,811 | 88,672 | 91,954 | |||||||||||||||
Account Values without Auto-Rebalancing Feature | 15,300 | 16,198 | 15,254 | 15,529 | 15,300 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 85,641 | 94,820 | 96,065 | 104,201 | 107,254 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Living Benefit Features Net Amount at Risk by Product Design Type | ||||||||||||||||||||
Net Amount at Risk with Auto-Rebalancing Feature | 4,238 | 2,650 | 3,938 | 3,013 | 3,145 | |||||||||||||||
Net Amount at Risk without Auto-Rebalancing Feature | 2,361 | 1,652 | 2,008 | 1,701 | 1,663 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 6,599 | 4,302 | 5,946 | 4,714 | 4,808 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(1) | At end of period. |
Page 15
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - INDIVIDUAL ANNUITIES DEATH BENEFIT FEATURES
(in millions)
2011 | 2012 | |||||||||||||||||||
4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||
DEATH BENEFIT FEATURES ACCOUNT VALUE AND NET AMOUNT AT RISK (1): | ||||||||||||||||||||
Variable Annuity Account Values by Death Benefit Features | ||||||||||||||||||||
Return of net deposits: | ||||||||||||||||||||
Account value | 78,334 | 86,442 | 87,311 | 94,401 | 96,951 | |||||||||||||||
Net amount at risk | 2,083 | 963 | 1,390 | 850 | 769 | |||||||||||||||
Minimum return, anniversary contract value, or maximum contract value: | ||||||||||||||||||||
Account value | 28,414 | 30,685 | 30,037 | 31,510 | 31,687 | |||||||||||||||
Net amount at risk | 5,699 | 4,173 | 4,975 | 4,268 | 4,207 | |||||||||||||||
Death Benefit Features Account Values by Product Design Type | ||||||||||||||||||||
Account Values with Auto-Rebalancing Feature | 70,341 | 78,622 | 80,811 | 88,672 | 91,954 | |||||||||||||||
Account Values without Auto-Rebalancing Feature | 36,407 | 38,505 | 36,537 | 37,239 | 36,684 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 106,748 | 117,127 | 117,348 | 125,911 | 128,638 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Death Benefit Features Net Amount at Risk by Product Design Type | ||||||||||||||||||||
Net Amount at Risk with Auto-Rebalancing Feature | 2,154 | 995 | 1,596 | 983 | 958 | |||||||||||||||
Net Amount at Risk without Auto-Rebalancing Feature | 5,628 | 4,141 | 4,769 | 4,135 | 4,018 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 7,782 | 5,136 | 6,365 | 5,118 | 4,976 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(1) | At end of period. |
Page 16
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - RETIREMENT SEGMENT SALES RESULTS AND ACCOUNT VALUES
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
RETIREMENT SEGMENT SALES AND ACCOUNT VALUES | ||||||||||||||||||||||||||||
Full Service: | ||||||||||||||||||||||||||||
139,430 | 141,313 | Beginning total account value | 134,198 | 139,430 | 145,991 | 142,405 | 146,934 | |||||||||||||||||||||
16,390 | 16,821 | Deposits and sales | 3,879 | 4,646 | 4,363 | 3,478 | 3,903 | |||||||||||||||||||||
(19,223 | ) | (19,160 | ) | Withdrawals and benefits | (5,893 | ) | (7,103 | ) | (3,671 | ) | (4,063 | ) | (4,386 | ) | ||||||||||||||
11,808 | 456 | Change in market value, interest credited, interest income and other activity (1) | 7,246 | 9,018 | (4,278 | ) | 5,114 | 1,954 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
148,405 | 139,430 | Ending total account value | 139,430 | 145,991 | 142,405 | 146,934 | 148,405 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(2,833 | ) | (2,339 | ) | Net additions (withdrawals) | (2,014 | ) | (2,457 | ) | 692 | (585 | ) | (483 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Stable value account values included above | 41,142 | 41,169 | 41,634 | 42,044 | 42,836 | |||||||||||||||||||||||
Institutional Investment Products: | ||||||||||||||||||||||||||||
90,089 | 64,183 | Beginning total account value | 80,513 | 90,089 | 93,853 | 102,443 | 104,646 | |||||||||||||||||||||
55,005 | 27,773 | Additions (2) | 10,825 | 4,399 | 8,457 | 2,957 | 39,192 | |||||||||||||||||||||
(8,495 | ) | (6,150 | ) | Withdrawals and benefits (3) | (2,084 | ) | (1,538 | ) | (2,832 | ) | (1,539 | ) | (2,586 | ) | ||||||||||||||
4,787 | 4,581 | Change in market value, interest credited and interest income | 733 | 928 | 1,562 | 1,509 | 788 | |||||||||||||||||||||
49 | (298 | ) | Other (4) | 102 | (25 | ) | 1,403 | (724 | ) | (605 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
141,435 | 90,089 | Ending total account value (5) | 90,089 | 93,853 | 102,443 | 104,646 | 141,435 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
46,510 | 21,623 | Net additions | 8,741 | 2,861 | 5,625 | 1,418 | 36,606 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(1) | Includes $(1.4) billion for the three months ended June 30, 2012 and the twelve months ending December 31, 2012, representing the divestiture of bank deposits previously held by Prudential Bank & Trust, as a result of the Company’s decision to limit its operations to trust services. Also includes $469 million for the three months ended December 31, 2011, representing the addition of Prudential’s Non-Qualified pension plan transferred from a third party administrator. |
(2) | Includes $1,008 million for the three and twelve months ended December 31, 2012, representing transfers of client balances from externally managed accounts to accounts managed by Prudential. These additions are offset within the “Other” category and there are no net impacts on ending account values for these transfers. |
(3) | Includes $(10) million, $(7) million, $(886) million, and $(9) million for the three months ended December 31, 2011, March 31, 2012, June 30, 2012, and September 30, 2012, respectively, and $(902) million and $(78) million for the twelve months ended December 31, 2012 and 2011, respectively, representing transfers of client balances managed by Prudential to externally managed accounts. These withdrawals are offset within the “Other” category and there are no net impacts on ending account values for these transfers. |
(4) | “Other” activity includes transfers to the Asset Management segment of $(415) million for the twelve months ended December 31, 2011. “Other” activity also includes transfers to externally/(internally) managed accounts of $10 million, $7 million, $886 million, $9 million, and $(1,008) million for the three months ended December 31, 2011, March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively, and $(106) million and $78 million for the twelve months ended December 31, 2012 and 2011, respectively. These transfers are offset in withdrawals/(additions) discussed above in notes 2 & 3. The remainder of “Other” activity primarily represents changes in asset balances for externally managed accounts. |
(5) | Ending total account values for Institutional Investment Products business includes $1.9 billion and $1.5 billion as of December 31, 2012 and 2011, respectively, related to collateralized funding agreements issued to the Federal Home Loan Bank of New York (FHLBNY), and $529 million as of December 31, 2011, related to affiliated funding agreements issued using the proceeds from the sale of Prudential Financial retail medium-term notes. |
Page 17
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY REVENUE AND ASSETS UNDER MANAGEMENT INFORMATION FOR ASSET MANAGEMENT SEGMENT
Supplementary Revenue Information (in millions): | ||||||||||||||||||||||||||||||||
Year-to-date | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||
Analysis of revenues by type: | ||||||||||||||||||||||||||||||||
1,667 | 1,541 | 8% | Asset management fees | 394 | 403 | 407 | 424 | 433 | ||||||||||||||||||||||||
207 | 339 | -39% | Other related revenues | 98 | 30 | (25 | ) | 113 | 89 | |||||||||||||||||||||||
524 | 651 | -20% | Service, distribution and other revenues | 221 | 134 | 124 | 117 | 149 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
2,398 | 2,531 | -5% | Total Asset Management segment revenues | 713 | 567 | 506 | 654 | 671 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Analysis of asset management fees by source: | ||||||||||||||||||||||||||||||||
775 | 729 | 6% | Institutional customers | 187 | 190 | 190 | 194 | 201 | ||||||||||||||||||||||||
509 | 452 | 13% | Retail customers | 113 | 121 | 124 | 132 | 132 | ||||||||||||||||||||||||
383 | 360 | 6% | General account | 94 | 92 | 93 | 98 | 100 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
1,667 | 1,541 | 8% | Total asset management fees | 394 | 403 | 407 | 424 | 433 | ||||||||||||||||||||||||
Supplementary Assets Under Management Information (in billions): | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Equity | Fixed Income | Real Estate | Total | |||||||||||||
Institutional customers | 51.7 | 230.8 | 31.2 | 313.7 | ||||||||||||
Retail customers | 86.6 | 50.3 | 1.8 | 138.7 | ||||||||||||
General account | 9.4 | 363.7 | 1.5 | 374.6 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 147.7 | 644.8 | 34.5 | 827.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
December 31, 2011 | ||||||||||||||||
Equity | Fixed Income | Real Estate | Total | |||||||||||||
Institutional customers | 46.3 | 197.8 | 27.7 | 271.8 | ||||||||||||
Retail customers | 71.7 | 46.2 | 1.4 | 119.3 | ||||||||||||
General account | 8.7 | 316.7 | 1.3 | 326.7 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 126.7 | 560.7 | 30.4 | 717.8 | ||||||||||||
|
|
|
|
|
|
|
|
Page 18
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT
(in billions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
Institutional Assets Under Management: | ||||||||||||||||||||||||||||
Assets gathered by Investment Management & Advisory Services sales force: | ||||||||||||||||||||||||||||
234.2 | 200.1 | Beginning assets under management | 224.0 | 234.2 | 247.5 | 251.4 | 263.8 | |||||||||||||||||||||
58.8 | 49.4 | Additions | 14.3 | 14.1 | 11.2 | 12.7 | 20.8 | |||||||||||||||||||||
(41.6 | ) | (32.5 | ) | Withdrawals | (10.7 | ) | (8.7 | ) | (11.2 | ) | (9.3 | ) | (12.4 | ) | ||||||||||||||
23.1 | 16.8 | Change in market value | 6.3 | 7.7 | 3.7 | 8.9 | 2.8 | |||||||||||||||||||||
0.2 | — | Net money market flows | 0.3 | 0.1 | 0.1 | 0.1 | (0.1 | ) | ||||||||||||||||||||
(0.1 | ) | 0.4 | Other (1) | — | 0.1 | 0.1 | — | (0.3 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
274.6 | 234.2 | Ending assets under management | 234.2 | 247.5 | 251.4 | 263.8 | 274.6 | |||||||||||||||||||||
39.1 | 37.6 | Affiliated institutional assets under management | 37.6 | 38.6 | 37.8 | 39.3 | 39.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
313.7 | 271.8 | Total assets managed for institutional customers at end of period | 271.8 | 286.1 | 289.2 | 303.1 | 313.7 | |||||||||||||||||||||
17.2 | 16.9 | Net institutional additions, excluding money market activity | 3.6 | 5.4 | — | 3.4 | 8.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Retail Assets Under Management: | ||||||||||||||||||||||||||||
Assets gathered by Investment Management & Advisory Services sales force: | ||||||||||||||||||||||||||||
69.6 | 75.1 | Beginning assets under management | 72.2 | 69.6 | 81.1 | 81.1 | 87.8 | |||||||||||||||||||||
37.0 | 29.9 | Additions | 8.2 | 9.4 | 9.5 | 8.0 | 10.1 | |||||||||||||||||||||
(24.2 | ) | (24.2 | ) | Withdrawals | (6.0 | ) | (6.1 | ) | (5.9 | ) | (5.5 | ) | (6.7 | ) | ||||||||||||||
8.8 | 0.3 | Change in market value | 5.2 | 8.2 | (3.6 | ) | 4.3 | (0.1 | ) | |||||||||||||||||||
(0.1 | ) | (1.1 | ) | Net money market flows | (1.0 | ) | — | — | (0.1 | ) | — | |||||||||||||||||
— | (10.4 | ) | Other (2) | (9.0 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
91.1 | 69.6 | Ending assets under management | 69.6 | 81.1 | 81.1 | 87.8 | 91.1 | |||||||||||||||||||||
47.6 | 49.7 | Affiliated retail assets under management | 49.7 | 44.0 | 50.6 | 46.1 | 47.6 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
138.7 | 119.3 | Total assets managed for retail customers at end of period | 119.3 | 125.1 | 131.7 | 133.9 | 138.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
12.8 | 5.7 | Net retail additions, excluding money market activity | 2.2 | 3.3 | 3.6 | 2.5 | 3.4 | |||||||||||||||||||||
(1) | “Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management. |
(2) | “Other” activity represents the sale of our investment in the Afore XXI operating joint venture in fourth quarter 2011, the effect of foreign exchange rate changes, and a reclassification in 2011 of certain fund balances to affiliated retail assets under management. |
Page 19
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINED STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
(in millions)
Year-to-date | % | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | Change | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
5,128 | 5,144 | 0% | Premiums | 1,276 | 1,269 | 1,290 | 1,295 | 1,274 | ||||||||||||||||||||||||
1,756 | 1,472 | 19% | Policy charges and fee income | 384 | 391 | 389 | 537 | 439 | ||||||||||||||||||||||||
1,619 | 1,553 | 4% | Net investment income | 389 | 400 | 402 | 409 | 408 | ||||||||||||||||||||||||
465 | 337 | 38% | Asset management fees, commissions and other income | 104 | 107 | 114 | 127 | 117 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
8,968 | 8,506 | 5% | Total revenues | 2,153 | 2,167 | 2,195 | 2,368 | 2,238 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
5,769 | 5,618 | 3% | Insurance and annuity benefits | 1,367 | 1,473 | 1,452 | 1,433 | 1,411 | ||||||||||||||||||||||||
557 | 527 | 6% | Interest credited to policyholders’ account balances | 135 | 133 | 139 | 139 | 146 | ||||||||||||||||||||||||
323 | 214 | 51% | Interest expense | 73 | 77 | 80 | 83 | 83 | ||||||||||||||||||||||||
(491 | ) | (317 | ) | -55% | Deferral of acquisition costs | (85 | ) | (89 | ) | (100 | ) | (103 | ) | (199 | ) | |||||||||||||||||
424 | 141 | 201% | Amortization of acquisition costs | 49 | 57 | 77 | 210 | 80 | ||||||||||||||||||||||||
1,986 | 1,678 | 18% | General and administrative expenses | 434 | 444 | 453 | 459 | 630 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
8,568 | 7,861 | 9% | Total benefits and expenses | 1,973 | 2,095 | 2,101 | 2,221 | 2,151 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
400 | 645 | -38% | Adjusted operating income before income taxes | 180 | 72 | 94 | 147 | 87 | ||||||||||||||||||||||||
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. |
Page 20
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINING STATEMENTS OF OPERATIONS - U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION
(in millions)
Twelve Months Ended December 31, 2012 | Quarter Ended December 31, 2012 | |||||||||||||||||||||||
Total U.S. Individual Life & Group Insurance Division | Individual Life | Group Insurance | Total U.S. Individual Life & Group Insurance Division | Individual Life | Group Insurance | |||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||
Premiums | 5,128 | 725 | 4,403 | 1,274 | 183 | 1,091 | ||||||||||||||||||
Policy charges and fee income | 1,756 | 1,251 | 505 | 439 | 304 | 135 | ||||||||||||||||||
Net investment income | 1,619 | 1,033 | 586 | 408 | 262 | 146 | ||||||||||||||||||
Asset management fees, commissions and other income | 465 | 358 | 107 | 117 | 91 | 26 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenues | 8,968 | 3,367 | 5,601 | 2,238 | 840 | 1,398 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||
Insurance and annuity benefits | 5,769 | 1,241 | 4,528 | 1,411 | 298 | 1,113 | ||||||||||||||||||
Interest credited to policyholders’ account balances | 557 | 329 | 228 | 146 | 88 | 58 | ||||||||||||||||||
Interest expense | 323 | 316 | 7 | 83 | 81 | 2 | ||||||||||||||||||
Deferral of acquisition costs | (491 | ) | (436 | ) | (55 | ) | (199 | ) | (144 | ) | (55 | ) | ||||||||||||
Amortization of acquisition costs | 424 | 419 | 5 | 80 | 78 | 2 | ||||||||||||||||||
General and administrative expenses | 1,986 | 1,114 | 872 | 630 | 340 | 290 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total benefits and expenses | 8,568 | 2,983 | 5,585 | 2,151 | 741 | 1,410 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted operating income (loss) before income taxes | 400 | 384 | 16 | 87 | 99 | (12 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2011 | Quarter Ended December 31, 2011 | |||||||||||||||||||||||
Total U.S. Individual Life & Group Insurance Division | Individual Life | Group Insurance | Total U.S. Individual Life & Group Insurance Division | Individual Life | Group Insurance | |||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||
Premiums | 5,144 | 716 | 4,428 | 1,276 | 179 | 1,097 | ||||||||||||||||||
Policy charges and fee income | 1,472 | 952 | 520 | 384 | 258 | 126 | ||||||||||||||||||
Net investment income | 1,553 | 978 | 575 | 389 | 249 | 140 | ||||||||||||||||||
Asset management fees, commissions and other income | 337 | 254 | 83 | 104 | 83 | 21 | ||||||||||||||||||
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|
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|
|
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|
| |||||||||||||
Total revenues | 8,506 | 2,900 | 5,606 | 2,153 | 769 | 1,384 | ||||||||||||||||||
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| |||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||
Insurance and annuity benefits | 5,618 | 1,144 | 4,474 | 1,367 | 276 | 1,091 | ||||||||||||||||||
Interest credited to policyholders’ account balances | 527 | 299 | 228 | 135 | 77 | 58 | ||||||||||||||||||
Interest expense | 214 | 214 | — | 73 | 73 | — | ||||||||||||||||||
Deferral of acquisition costs | (317 | ) | (317 | ) | — | (85 | ) | (85 | ) | — | ||||||||||||||
Amortization of acquisition costs | 141 | 135 | 6 | 49 | 47 | 2 | ||||||||||||||||||
General and administrative expenses | 1,678 | 943 | 735 | 434 | 243 | 191 | ||||||||||||||||||
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| |||||||||||||
Total benefits and expenses | 7,861 | 2,418 | 5,443 | 1,973 | 631 | 1,342 | ||||||||||||||||||
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| |||||||||||||
Adjusted operating income before income taxes | 645 | 482 | 163 | 180 | 138 | 42 | ||||||||||||||||||
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|
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments. Benefits and expenses exclude charges related to realized investment gains, net of losses. |
Page 21
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - INDIVIDUAL LIFE ANNUALIZED NEW BUSINESS PREMIUMS, ACCOUNT VALUE ACTIVITY, AND FACE AMOUNT IN FORCE
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
ANNUALIZED NEW BUSINESS PREMIUMS (1): | ||||||||||||||||||||||||||||
21 | 25 | Variable life | 4 | 4 | 5 | 4 | 8 | |||||||||||||||||||||
218 | 95 | Universal life | 29 | 34 | 42 | 52 | 90 | |||||||||||||||||||||
173 | 158 | Term life | 42 | 41 | 44 | 42 | 46 | |||||||||||||||||||||
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412 | 278 | Total | 75 | 79 | 91 | 98 | 144 | |||||||||||||||||||||
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ANNUALIZED NEW BUSINESS PREMIUMS BY DISTRIBUTION CHANNEL (1): | ||||||||||||||||||||||||||||
90 | 84 | Prudential Agents | 22 | 20 | 24 | 22 | 24 | |||||||||||||||||||||
322 | 194 | Third party distribution | 53 | 59 | 67 | 76 | 120 | |||||||||||||||||||||
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| |||||||||||||||
412 | 278 | Total | 75 | 79 | 91 | 98 | 144 | |||||||||||||||||||||
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ACCOUNT VALUE ACTIVITY: | ||||||||||||||||||||||||||||
Policyholders’ Account Balances (2): | ||||||||||||||||||||||||||||
9,500 | 8,773 | Beginning balance | 9,364 | 9,500 | 9,792 | 10,021 | 10,058 | |||||||||||||||||||||
2,197 | 1,631 | Premiums and deposits | 454 | 480 | 502 | 506 | 709 | |||||||||||||||||||||
(838 | ) | (780 | ) | Surrenders and withdrawals | (199 | ) | (196 | ) | (220 | ) | (209 | ) | (213 | ) | ||||||||||||||
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| |||||||||||||||
1,359 | 851 | Net sales | 255 | 284 | 282 | 297 | 496 | |||||||||||||||||||||
(234 | ) | (221 | ) | Benefit payments | (51 | ) | (57 | ) | (65 | ) | (53 | ) | (59 | ) | ||||||||||||||
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| |||||||||||||||
1,125 | 630 | Net flows | 204 | 227 | 217 | 244 | 437 | |||||||||||||||||||||
32 | 164 | Interest credited and other | (44 | ) | 88 | 28 | (195 | ) | 111 | |||||||||||||||||||
300 | 287 | Net transfers from separate account | 59 | 70 | 78 | 68 | 84 | |||||||||||||||||||||
(374 | ) | (354 | ) | Policy charges | (83 | ) | (93 | ) | (94 | ) | (80 | ) | (107 | ) | ||||||||||||||
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| |||||||||||||||
10,583 | 9,500 | Ending balance | 9,500 | 9,792 | 10,021 | 10,058 | 10,583 | |||||||||||||||||||||
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| |||||||||||||||
Separate Account Liabilities: | ||||||||||||||||||||||||||||
16,491 | 17,157 | Beginning balance | 15,506 | 16,491 | 17,842 | 17,113 | 17,835 | |||||||||||||||||||||
849 | 896 | Premiums and deposits | 215 | 208 | 211 | 212 | 218 | |||||||||||||||||||||
(577 | ) | (694 | ) | Surrenders and withdrawals | (150 | ) | (145 | ) | (130 | ) | (148 | ) | (154 | ) | ||||||||||||||
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| |||||||||||||||
272 | 202 | Net sales | 65 | 63 | 81 | 64 | 64 | |||||||||||||||||||||
(30 | ) | (37 | ) | Benefit payments | (8 | ) | (7 | ) | (8 | ) | (8 | ) | (7 | ) | ||||||||||||||
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| |||||||||||||||
242 | 165 | Net flows | 57 | 56 | 73 | 56 | 57 | |||||||||||||||||||||
2,036 | 128 | Change in market value, interest credited and other | 1,151 | 1,530 | (562 | ) | 895 | 173 | ||||||||||||||||||||
(300 | ) | (287 | ) | Net transfers to general account | (59 | ) | (70 | ) | (78 | ) | (68 | ) | (84 | ) | ||||||||||||||
(652 | ) | (671 | ) | Policy charges | (164 | ) | (165 | ) | (162 | ) | (161 | ) | (164 | ) | ||||||||||||||
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17,817 | 16,492 | Ending balance | 16,491 | 17,842 | 17,113 | 17,835 | 17,817 | |||||||||||||||||||||
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FACE AMOUNT IN FORCE (3): | ||||||||||||||||||||||||||||
Variable life | 113,039 | 113,118 | 111,530 | 111,159 | 110,218 | |||||||||||||||||||||||
Universal life | 41,063 | 42,751 | 45,161 | 47,943 | 53,092 | |||||||||||||||||||||||
Term life | 477,235 | 483,890 | 491,724 | 499,051 | 506,868 | |||||||||||||||||||||||
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| |||||||||||||||||||
Total | 631,337 | 639,759 | 648,415 | 658,153 | 670,178 | |||||||||||||||||||||||
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| |||||||||||||||||||
(1) | Excludes corporate-owned life insurance. |
(2) | Includes fixed rate funds, alliance deposits, supplementary contracts and deferred revenues on variable products. |
(3) | At end of period; before reinsurance ceded. |
Page 22
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR INDIVIDUAL LIFE INSURANCE
(dollar amounts in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
Individual Life Insurance: | ||||||||||||||||||||||||||||
Policy Surrender Experience: | ||||||||||||||||||||||||||||
659 | 778 | Cash value of surrenders | 155 | 170 | 155 | 165 | 169 | |||||||||||||||||||||
2.7% | 3.3% | Cash value of surrenders as a percentage of mean future policy benefits, policyholders’ account balances, and separate account balances | 2.7% | 2.8% | 2.5% | 2.6% | 2.6% | |||||||||||||||||||||
Death benefits per $1,000 of in force (1): | ||||||||||||||||||||||||||||
4.71 | 4.52 | Variable and universal life | 4.18 | 4.35 | 5.90 | 4.38 | 4.17 | |||||||||||||||||||||
1.46 | 1.09 | Term life | 0.99 | 1.42 | 2.08 | 1.00 | 1.36 | |||||||||||||||||||||
3.01 | 2.73 | Total, Individual Life Insurance | 2.49 | 2.86 | 3.89 | 2.60 | 2.69 | |||||||||||||||||||||
(1) | Annualized, for interim reporting periods. Amounts are stated net of reinsurance. |
Page 23
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
U.S. INDIVIDUAL LIFE AND GROUP INSURANCE DIVISION - SUPPLEMENTARY INFORMATION FOR GROUP INSURANCE
(dollar amounts in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
GROUP INSURANCE ANNUALIZED NEW BUSINESS PREMIUMS: | ||||||||||||||||||||||||||||
304 | 486 | Group life | 49 | 211 | 24 | 18 | 51 | |||||||||||||||||||||
135 | 149 | Group disability | 20 | 81 | 19 | 28 | 7 | |||||||||||||||||||||
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| |||||||||||||||
439 | 635 | Total | 69 | 292 | 43 | 46 | 58 | |||||||||||||||||||||
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| |||||||||||||||
Future Policy Benefits (1): | ||||||||||||||||||||||||||||
Group life | 2,418 | 2,325 | 2,300 | 2,231 | 2,385 | |||||||||||||||||||||||
Group disability | 8 | 37 | 28 | 17 | 4 | |||||||||||||||||||||||
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| |||||||||||||||||||
Total | 2,426 | 2,362 | 2,328 | 2,248 | 2,389 | |||||||||||||||||||||||
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| |||||||||||||||||||
Policyholders’ Account Balances (1): | ||||||||||||||||||||||||||||
Group life | 7,127 | 7,188 | 7,310 | 7,522 | 7,726 | |||||||||||||||||||||||
Group disability | 179 | 168 | 182 | 193 | 209 | |||||||||||||||||||||||
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|
|
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|
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| |||||||||||||||||||
Total | 7,306 | 7,356 | 7,492 | 7,715 | 7,935 | |||||||||||||||||||||||
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| |||||||||||||||||||
Separate Account Liabilities (1): | ||||||||||||||||||||||||||||
Group life | 19,174 | 19,826 | 19,506 | 20,110 | 21,940 | |||||||||||||||||||||||
Group disability | — | — | — | — | — | |||||||||||||||||||||||
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| |||||||||||||||||||
Total | 19,174 | 19,826 | 19,506 | 20,110 | 21,940 | |||||||||||||||||||||||
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| |||||||||||||||||||
Group Life Insurance: | ||||||||||||||||||||||||||||
4,177 | 4,202 | Gross premiums, policy charges and fee income (2) | 1,040 | 1,064 | 1,015 | 1,019 | 1,079 | |||||||||||||||||||||
3,983 | 4,065 | Earned premiums, policy charges and fee income | 999 | 990 | 989 | 1,010 | 994 | |||||||||||||||||||||
90.9% | 89.5% | Benefits ratio | 86.0 | % | 95.4 | % | 88.6 | % | 90.7 | % | 89.0 | % | ||||||||||||||||
10.0% | 8.5% | Administrative operating expense ratio | 8.9 | % | 9.1 | % | 9.9 | % | 9.2 | % | 11.8 | % | ||||||||||||||||
Persistency ratio | 95.8 | % | 95.4 | % | 95.0 | % | 94.5 | % | 94.0 | % | ||||||||||||||||||
Group Disability Insurance: | ||||||||||||||||||||||||||||
959 | 903 | Gross premiums, policy charges and fee income (2) | 228 | 232 | 245 | 239 | 243 | |||||||||||||||||||||
925 | 883 | Earned premiums, policy charges and fee income | 224 | 230 | 232 | 231 | 232 | |||||||||||||||||||||
98.1% | 94.7% | Benefits ratio | 104.0 | % | 102.2 | % | 97.4 | % | 93.9 | % | 98.7 | % | ||||||||||||||||
25.3% | 24.8% | Administrative operating expense ratio | 25.4 | % | 25.9 | % | 23.3 | % | 23.8 | % | 28.4 | % | ||||||||||||||||
Persistency ratio | 88.5 | % | 93.9 | % | 91.6 | % | 90.5 | % | 89.3 | % | ||||||||||||||||||
(1) | As of end of period. |
(2) | Before returns of premiums to participating policyholders for favorable claims experience. |
Page 24
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
DEFERRED POLICY ACQUISITION COSTS & DEFERRED SALES INDUCEMENTS - INDIVIDUAL ANNUITIES, INDIVIDUAL LIFE AND GROUP INSURANCE
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
DEFERRED POLICY ACQUISITION COSTS | ||||||||||||||||||||||||||||
INDIVIDUAL ANNUITIES: | ||||||||||||||||||||||||||||
2,390 | 3,019 | Beginning balance | 2,131 | 2,390 | 3,252 | 2,619 | 3,457 | |||||||||||||||||||||
1,016 | 1,038 | Capitalization | 228 | 254 | 274 | 288 | 200 | |||||||||||||||||||||
(338 | ) | (536 | ) | Amortization - operating results | (89 | ) | (86 | ) | (157 | ) | 36 | (131 | ) | |||||||||||||||
734 | (1,132 | ) | Amortization - realized investment gains and losses | 73 | 675 | (747 | ) | 518 | 288 | |||||||||||||||||||
27 | 17 | Impact of unrealized (gains) or losses on AFS securities | 47 | 19 | (3 | ) | (4 | ) | 15 | |||||||||||||||||||
— | (16 | ) | Other (1) | — | — | — | — | — | ||||||||||||||||||||
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3,829 | 2,390 | Ending balance | 2,390 | 3,252 | 2,619 | 3,457 | 3,829 | |||||||||||||||||||||
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| |||||||||||||||
INDIVIDUAL LIFE INSURANCE: | ||||||||||||||||||||||||||||
3,192 | 3,214 | Beginning balance | 3,263 | 3,192 | 3,242 | 3,238 | 2,994 | |||||||||||||||||||||
436 | 317 | Capitalization | 85 | 89 | 100 | 103 | 144 | |||||||||||||||||||||
(419 | ) | (135 | ) | Amortization - operating results | (47 | ) | (56 | ) | (76 | ) | (209 | ) | (78 | ) | ||||||||||||||
— | — | Amortization - realized investment gains and losses | — | — | — | — | — | |||||||||||||||||||||
(93 | ) | (204 | ) | Impact of unrealized (gains) or losses on AFS securities | (109 | ) | 17 | (28 | ) | (138 | ) | 56 | ||||||||||||||||
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| |||||||||||||||
3,116 | 3,192 | Ending balance | 3,192 | 3,242 | 3,238 | 2,994 | 3,116 | |||||||||||||||||||||
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| |||||||||||||||
GROUP INSURANCE: | ||||||||||||||||||||||||||||
132 | 138 | Beginning balance | 134 | 132 | 131 | 130 | 129 | |||||||||||||||||||||
55 | — | Capitalization | — | — | — | — | 55 | |||||||||||||||||||||
(5 | ) | (6 | ) | Amortization - operating results | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||
— | — | Amortization - realized investment gains and losses | — | — | — | — | — | |||||||||||||||||||||
— | — | Impact of unrealized losses on AFS securities | — | — | — | — | — | |||||||||||||||||||||
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| |||||||||||||||
182 | 132 | Ending balance | 132 | 131 | 130 | 129 | 182 | |||||||||||||||||||||
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| |||||||||||||||
DEFERRED SALES INDUCEMENTS | ||||||||||||||||||||||||||||
INDIVIDUAL ANNUITIES: | ||||||||||||||||||||||||||||
1,000 | 1,348 | Beginning balance | 915 | 1,000 | 1,306 | 1,032 | 1,275 | |||||||||||||||||||||
258 | 358 | Capitalization | 79 | 82 | 88 | 70 | 18 | |||||||||||||||||||||
(165 | ) | (262 | ) | Amortization - operating results | (41 | ) | (45 | ) | (68 | ) | (2 | ) | (50 | ) | ||||||||||||||
246 | (464 | ) | Amortization - realized investment gains and losses | 29 | 262 | (295 | ) | 172 | 107 | |||||||||||||||||||
18 | 4 | Impact of unrealized losses on AFS securities | 18 | 7 | 1 | 3 | 7 | |||||||||||||||||||||
— | 16 | Other (1) | — | — | — | — | — | |||||||||||||||||||||
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| |||||||||||||||
1,357 | 1,000 | Ending balance | 1,000 | 1,306 | 1,032 | 1,275 | 1,357 | |||||||||||||||||||||
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| |||||||||||||||
(1) | “Other” activity for the twelve months ended December 2011 reflects a reclassification between the balances, as of January 1, 2011, of deferred policy acquisition costs and deferred sales inducements for Individual Annuities due to a refinement in methodology for allocating such balances. |
Page 25
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION
(in millions)
Year-to-date | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||
24,484 | 15,015 | 63% | Premiums | 4,018 | 4,605 | 5,164 | 6,814 | 7,901 | ||||||||||||||||||||||||
597 | 552 | 8% | Policy charges and fee income | 146 | 152 | 150 | 139 | 156 | ||||||||||||||||||||||||
4,268 | 3,754 | 14% | Net investment income | 1,018 | 1,014 | 1,030 | 1,119 | 1,105 | ||||||||||||||||||||||||
237 | 246 | -4% | Asset management fees, commissions and other income | (4 | ) | 46 | 62 | 82 | 47 | |||||||||||||||||||||||
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| |||||||||||||||||||
29,586 | 19,567 | 51% | Total revenues | 5,178 | 5,817 | 6,406 | 8,154 | 9,209 | ||||||||||||||||||||||||
|
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|
|
|
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|
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| |||||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||
21,105 | 12,085 | 75% | Insurance and annuity benefits | 3,175 | 3,752 | 4,303 | 5,982 | 7,068 | ||||||||||||||||||||||||
1,122 | 978 | 15% | Interest credited to policyholders’ account balances | 276 | 278 | 270 | 303 | 271 | ||||||||||||||||||||||||
3 | 1 | 200% | Interest expense | — | 1 | (1 | ) | 1 | 2 | |||||||||||||||||||||||
(2,024 | ) | (1,684 | ) | -20% | Deferral of acquisition costs | (450 | ) | (470 | ) | (542 | ) | (494 | ) | (518 | ) | |||||||||||||||||
1,173 | 880 | 33% | Amortization of acquisition costs | 240 | 260 | 284 | 279 | 350 | ||||||||||||||||||||||||
5,503 | 5,044 | 9% | General and administrative expenses | 1,435 | 1,399 | 1,414 | 1,301 | 1,389 | ||||||||||||||||||||||||
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|
|
|
|
| |||||||||||||||||||
26,882 | 17,304 | 55% | Total benefits and expenses | 4,676 | 5,220 | 5,728 | 7,372 | 8,562 | ||||||||||||||||||||||||
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|
| �� |
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|
| ||||||||||||||||||
2,704 | 2,263 | 19% | Adjusted operating income before income taxes | 502 | 597 | 678 | 782 | 647 | ||||||||||||||||||||||||
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 26
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
COMBINING STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION
(in millions)
Twelve Months Ended December 31, 2012 | Quarter Ended December 31, 2012 | |||||||||||||||||||||||
Total International Insurance Division | International Insurance - Life Planner Operations | International Insurance - Gibraltar Life & Other Operations | Total International Insurance Division | International Insurance - Life Planner Operations | International Insurance - Gibraltar Life & Other Operations | |||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||
Premiums | 24,484 | 6,971 | 17,513 | 7,901 | 1,728 | 6,173 | ||||||||||||||||||
Policy charges and fee income | 597 | 371 | 226 | 156 | 100 | 56 | ||||||||||||||||||
Net investment income | 4,268 | 1,595 | 2,673 | 1,105 | 410 | 695 | ||||||||||||||||||
Asset management fees, commissions and other income | 237 | 65 | 172 | 47 | 18 | 29 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenues | 29,586 | 9,002 | 20,584 | 9,209 | 2,256 | 6,953 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||
Insurance and annuity benefits | 21,105 | 5,799 | 15,306 | 7,068 | 1,471 | 5,597 | ||||||||||||||||||
Interest credited to policyholders’ account balances | 1,122 | 261 | 861 | 271 | 52 | 219 | ||||||||||||||||||
Interest expense | 3 | — | 3 | 2 | — | 2 | ||||||||||||||||||
Deferral of acquisition costs | (2,024 | ) | (819 | ) | (1,205 | ) | (518 | ) | (191 | ) | (327 | ) | ||||||||||||
Amortization of acquisition costs | 1,173 | 441 | 732 | 350 | 115 | 235 | ||||||||||||||||||
General and administrative expenses | 5,503 | 1,839 | 3,664 | 1,389 | 477 | 912 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total benefits and expenses | 26,882 | 7,521 | 19,361 | 8,562 | 1,924 | 6,638 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted operating income before income taxes | 2,704 | 1,481 | 1,223 | 647 | 332 | 315 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Twelve Months Ended December 31, 2011 | Quarter Ended December 31, 2011 | |||||||||||||||||||||||
Total International Insurance Division | International Insurance - Life Planner Operations | International Insurance - Gibraltar Life & Other Operations | Total International Insurance Division | International Insurance - Life Planner Operations | International Insurance - Gibraltar Life & Other Operations | |||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||
Premiums | 15,015 | 6,411 | 8,604 | 4,018 | 1,632 | 2,386 | ||||||||||||||||||
Policy charges and fee income | 552 | 371 | 181 | 146 | 92 | 54 | ||||||||||||||||||
Net investment income | 3,754 | 1,451 | 2,303 | 1,018 | 375 | 643 | ||||||||||||||||||
Asset management fees, commissions and other income | 246 | (31 | ) | 277 | (4 | ) | (14 | ) | 10 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenues | 19,567 | 8,202 | 11,365 | 5,178 | 2,085 | 3,093 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||
Insurance and annuity benefits | 12,085 | 5,294 | 6,791 | 3,175 | 1,351 | 1,824 | ||||||||||||||||||
Interest credited to policyholders’ account balances | 978 | 245 | 733 | 276 | 61 | 215 | ||||||||||||||||||
Interest expense | 1 | (1 | ) | 2 | — | (1 | ) | 1 | ||||||||||||||||
Deferral of acquisition costs | (1,684 | ) | (738 | ) | (946 | ) | (450 | ) | (184 | ) | (266 | ) | ||||||||||||
Amortization of acquisition costs | 880 | 463 | 417 | 240 | 117 | 123 | ||||||||||||||||||
General and administrative expenses | 5,044 | 1,693 | 3,351 | 1,435 | 441 | 994 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total benefits and expenses | 17,304 | 6,956 | 10,348 | 4,676 | 1,785 | 2,891 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Adjusted operating income before income taxes | 2,263 | 1,246 | 1,017 | 502 | 300 | 202 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 27
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION
(in millions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||
2012 | 2011 | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||
INTERNATIONAL INSURANCE OPERATING DATA: | ||||||||||||||||||||||||||||
Actual exchange rate basis (1): | ||||||||||||||||||||||||||||
Net premiums, policy charges and fee income: | ||||||||||||||||||||||||||||
5,729 | 5,210 | Japan, excluding Gibraltar Life | 1,317 | 1,531 | 1,393 | 1,416 | 1,389 | |||||||||||||||||||||
17,739 | 8,785 | Gibraltar Life | 2,440 | 2,837 | 3,530 | 5,143 | 6,229 | |||||||||||||||||||||
1,613 | 1,572 | All other countries | 407 | 389 | 391 | 394 | 439 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
25,081 | 15,567 | Total | 4,164 | 4,757 | 5,314 | 6,953 | 8,057 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Annualized new business premiums: | ||||||||||||||||||||||||||||
992 | 816 | Japan, excluding Gibraltar Life | 207 | 305 | 316 | 181 | 190 | |||||||||||||||||||||
2,724 | 2,042 | Gibraltar Life | 555 | 469 | 762 | 680 | 813 | |||||||||||||||||||||
362 | 334 | All other countries | 87 | 89 | 86 | 93 | 94 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4,078 | 3,192 | Total | 849 | 863 | 1,164 | 954 | 1,097 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Annualized new business premiums by distribution channel: | ||||||||||||||||||||||||||||
1,354 | 1,150 | Life Planners | 294 | 394 | 402 | 274 | 284 | |||||||||||||||||||||
930 | 979 | Gibraltar Life Consultants | 280 | 193 | 316 | 208 | 213 | |||||||||||||||||||||
1,434 | 603 | Banks | 152 | 193 | 261 | 433 | 547 | |||||||||||||||||||||
360 | 460 | Independent Agency | 123 | 83 | 185 | 39 | 53 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4,078 | 3,192 | Total | 849 | 863 | 1,164 | 954 | 1,097 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Constant exchange rate basis (2): | ||||||||||||||||||||||||||||
Net premiums, policy charges and fee income: | ||||||||||||||||||||||||||||
5,723 | 5,193 | Japan, excluding Gibraltar Life | 1,283 | 1,526 | 1,394 | 1,398 | 1,405 | |||||||||||||||||||||
17,658 | 8,774 | Gibraltar Life | 2,364 | 2,771 | 3,559 | 5,076 | 6,252 | |||||||||||||||||||||
1,576 | 1,490 | All other countries | 403 | 377 | 390 | 388 | 421 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
24,957 | 15,457 | Total | 4,050 | 4,674 | 5,343 | 6,862 | 8,078 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Annualized new business premiums: | ||||||||||||||||||||||||||||
992 | 815 | Japan, excluding Gibraltar Life | 202 | 306 | 316 | 178 | 192 | |||||||||||||||||||||
2,704 | 2,031 | Gibraltar Life | 542 | 459 | 769 | 670 | 806 | |||||||||||||||||||||
355 | 311 | All other countries | 85 | 85 | 86 | 93 | 91 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4,051 | 3,157 | Total | 829 | 850 | 1,171 | 941 | 1,089 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Annualized new business premiums by distribution channel: | ||||||||||||||||||||||||||||
1,347 | 1,126 | Life Planners | 287 | 391 | 402 | 271 | 283 | |||||||||||||||||||||
922 | 972 | Gibraltar Life Consultants | 273 | 189 | 318 | 203 | 212 | |||||||||||||||||||||
1,422 | 600 | Banks | 149 | 190 | 261 | 429 | 542 | |||||||||||||||||||||
360 | 459 | Independent Agency | 120 | 80 | 190 | 38 | 52 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
4,051 | 3,157 | Total | 829 | 850 | 1,171 | 941 | 1,089 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(1) | Translated based on applicable average exchange rates for the period shown. |
(2) | Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars. |
Page 28
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
INTERNATIONAL INSURANCE DIVISION - SALES RESULTS AND SUPPLEMENTARY INFORMATION
2011 | 2012 | |||||||||||||||||||
4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||
Face amount of individual policies in force at end of period (in billions) (1)(2): | ||||||||||||||||||||
(Constant exchange rate basis) | ||||||||||||||||||||
Japan, excluding Gibraltar Life | 346 | 350 | 354 | 356 | 359 | |||||||||||||||
Gibraltar Life | 401 | 400 | 400 | 406 | 411 | |||||||||||||||
All other countries | 105 | 105 | 105 | 106 | 107 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 852 | 855 | 859 | 868 | 877 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Number of individual policies in force at end of period (in thousands) (2): | ||||||||||||||||||||
Japan, excluding Gibraltar Life | 2,678 | 2,725 | 2,773 | 2,794 | 2,825 | |||||||||||||||
Gibraltar Life | 7,477 | 7,448 | 7,417 | 7,432 | 7,449 | |||||||||||||||
All other countries | 1,575 | 1,606 | 1,624 | 1,643 | 1,662 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 11,730 | 11,779 | 11,814 | 11,869 | 11,936 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
International life insurance policy persistency: (3) | ||||||||||||||||||||
Excluding Gibraltar Life: | ||||||||||||||||||||
13 months | 92.8 | % | 93.0 | % | 93.0 | % | 93.0 | % | 93.0 | % | ||||||||||
25 months | 85.4 | % | 85.2 | % | 85.4 | % | 85.7 | % | 86.1 | % | ||||||||||
Gibraltar Life: | ||||||||||||||||||||
13 months | 93.1 | % | 93.0 | % | 90.6 | % | 90.4 | % | 89.7 | % | ||||||||||
25 months | 85.8 | % | 85.8 | % | 81.6 | % | 82.0 | % | 82.4 | % | ||||||||||
Number of Life Planners at end of period: | ||||||||||||||||||||
Japan | 3,137 | 3,165 | 3,116 | 3,169 | 3,216 | |||||||||||||||
All other countries | 3,655 | 3,654 | 3,690 | 3,760 | 3,842 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total life planners | 6,792 | 6,819 | 6,806 | 6,929 | 7,058 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Gibraltar Life Consultants | 12,791 | 12,219 | 12,031 | 11,683 | 11,333 | |||||||||||||||
(1) | Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars. |
(2) | Direct business only; policy count includes annuities. |
(3) | Excludes Star/Edison business for 1Q 2012 and prior periods. |
Page 29
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
Consolidated Portfolio | Closed Block Business | Financial Services Businesses | Consolidated Portfolio | Closed Block Business | Financial Services Businesses | |||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
Public, available-for-sale, at fair value | 254,096 | 28,790 | 225,306 | 68.2 | % | 209,297 | 30,211 | 179,086 | 64.3 | % | ||||||||||||||||||||||
Public, held-to-maturity, at amortized cost | 3,116 | — | 3,116 | 0.9 | % | 3,743 | — | 3,743 | 1.3 | % | ||||||||||||||||||||||
Private, available-for-sale, at fair value | 46,875 | 17,629 | 29,246 | 8.8 | % | 43,243 | 16,305 | 26,938 | 9.7 | % | ||||||||||||||||||||||
Private, held-to-maturity, at amortized cost | 1,152 | — | 1,152 | 0.3 | % | 1,364 | — | 1,364 | 0.5 | % | ||||||||||||||||||||||
Trading account assets supporting insurance liabilities, at fair value | 20,590 | — | 20,590 | 6.2 | % | 19,481 | — | 19,481 | 7.0 | % | ||||||||||||||||||||||
Other trading account assets, at fair value | 1,701 | 275 | 1,426 | 0.4 | % | 2,421 | 317 | 2,104 | 0.8 | % | ||||||||||||||||||||||
Equity securities, available-for-sale, at fair value | 8,256 | 3,225 | 5,031 | 1.5 | % | 7,523 | 3,122 | 4,401 | 1.6 | % | ||||||||||||||||||||||
Commercial mortgage and other loans, at book value | 36,231 | 9,608 | 26,623 | 8.1 | % | 34,113 | 9,040 | 25,073 | 9.0 | % | ||||||||||||||||||||||
Policy loans, at outstanding balance | 11,575 | 5,120 | 6,455 | 2.0 | % | 11,559 | 5,296 | 6,263 | 2.2 | % | ||||||||||||||||||||||
Other long-term investments (1) | 8,677 | 2,012 | 6,665 | 2.0 | % | 6,471 | 1,990 | 4,481 | 1.6 | % | ||||||||||||||||||||||
Short-term investments | 6,385 | 1,261 | 5,124 | 1.6 | % | 6,137 | 528 | 5,609 | 2.0 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Subtotal (2) | 398,654 | 67,920 | 330,734 | 100.0 | % | 345,352 | 66,809 | 278,543 | 100.0 | % | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||
Invested assets of other entities and operations (3) | 6,928 | — | 6,928 | 10,895 | — | 10,895 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total investments | 405,582 | 67,920 | 337,662 | 356,247 | 66,809 | 289,438 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities by Credit Quality (2):
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||
Financial Services Businesses | Financial Services Businesses | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | % of Total | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | % of Total | |||||||||||||||||||||||||||||||||
Public Fixed Maturities: | ||||||||||||||||||||||||||||||||||||||||||
NAIC Rating (4) | ||||||||||||||||||||||||||||||||||||||||||
1 | 181,892 | 15,753 | 985 | 196,660 | 86.0 | % | 151,700 | 11,143 | 1,756 | 161,087 | 88.0 | % | ||||||||||||||||||||||||||||||
2 | 25,074 | 2,029 | 439 | 26,664 | 11.7 | % | 17,017 | 1,298 | 797 | 17,518 | 9.6 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Subtotal - High or Highest Quality Securities | 206,966 | 17,782 | 1,424 | 223,324 | 97.7 | % | 168,717 | 12,441 | 2,553 | 178,605 | 97.6 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
3 | 3,670 | 128 | 204 | 3,594 | 1.6 | % | 3,446 | 66 | 574 | 2,938 | 1.6 | % | ||||||||||||||||||||||||||||||
4 | 1,351 | 100 | 122 | 1,329 | 0.6 | % | 1,328 | 34 | 296 | 1,066 | 0.6 | % | ||||||||||||||||||||||||||||||
5 | 340 | 20 | 58 | 302 | 0.1 | % | 443 | 6 | 174 | 275 | 0.1 | % | ||||||||||||||||||||||||||||||
6 | 55 | 10 | 17 | 48 | 0.0 | % | 219 | 15 | 105 | 129 | 0.1 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Subtotal - Other Securities | 5,416 | 258 | 401 | 5,273 | 2.3 | % | 5,436 | 121 | 1,149 | 4,408 | 2.4 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total | 212,382 | 18,040 | 1,825 | 228,597 | 100.0 | % | 174,153 | 12,562 | 3,702 | 183,013 | 100.0 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Private Fixed Maturities: | ||||||||||||||||||||||||||||||||||||||||||
NAIC Rating (4) | ||||||||||||||||||||||||||||||||||||||||||
1 | 7,237 | 811 | 52 | 7,996 | 26.2 | % | 7,018 | 730 | 84 | 7,664 | 27.0 | % | ||||||||||||||||||||||||||||||
2 | 17,350 | 1,659 | 217 | 18,792 | 61.7 | % | 15,847 | 1,273 | 362 | 16,758 | 59.1 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Subtotal - High or Highest Quality Securities | 24,587 | 2,470 | 269 | 26,788 | 87.9 | % | 22,865 | 2,003 | 446 | 24,422 | 86.1 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
3 | 2,416 | 173 | 29 | 2,560 | 8.4 | % | 2,532 | 134 | 43 | 2,623 | 9.2 | % | ||||||||||||||||||||||||||||||
4 | 631 | 33 | 7 | 657 | 2.2 | % | 715 | 14 | 20 | 709 | 2.5 | % | ||||||||||||||||||||||||||||||
5 | 310 | 7 | 16 | 301 | 1.0 | % | 490 | 5 | 42 | 453 | 1.6 | % | ||||||||||||||||||||||||||||||
6 | 131 | 29 | — | 160 | 0.5 | % | 130 | 31 | 3 | 158 | 0.6 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Subtotal - Other Securities | 3,488 | 242 | 52 | 3,678 | 12.1 | % | 3,867 | 184 | 108 | 3,943 | 13.9 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||
Total | 28,075 | 2,712 | 321 | 30,466 | 100.0 | % | 26,732 | 2,187 | 554 | 28,365 | 100.0 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, and other miscellaneous investments. |
(2) | Excludes (i) assets of our trading and banking, (ii) assets of our asset management operations, including assets managed for third parties, and (iii) those assets classified as “separate account assets” on our balance sheet. |
(3) | Includes invested assets of trading and banking and asset management operations. Excludes assets of our asset management operations managed for third parties and those assets classified as “separate account assets” on our balance sheet. |
(4) | Reflects equivalent ratings for investments of the international insurance operations. Includes, as of December 31, 2012 and December 31, 2011, respectively, 104 securities with amortized cost of $793 million (fair value $847 million) and 110 securities with amortized cost of $817 million (fair value, $852 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings. |
Page 30
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 |
FINANCIAL SERVICES BUSINESSES INVESTMENT PORTFOLIO COMPOSITION
(in millions)
December 31, 2012 | December 31, 2011 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Japanese Insurance Operations (1): | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Public, available-for-sale, at fair value | 124,710 | 82.2 | % | 111,857 | 80.3 | % | ||||||||||
Public, held-to-maturity, at amortized cost | 3,116 | 2.0 | % | 3,743 | 2.7 | % | ||||||||||
Private, available-for-sale, at fair value | 6,252 | 4.1 | % | 5,020 | 3.6 | % | ||||||||||
Private, held-to-maturity, at amortized cost | 1,152 | 0.8 | % | 1,364 | 1.0 | % | ||||||||||
Trading account assets supporting insurance liabilities, at fair value | 1,838 | 1.2 | % | 1,732 | 1.2 | % | ||||||||||
Other trading account assets, at fair value | 1,195 | 0.8 | % | 1,496 | 1.1 | % | ||||||||||
Equity securities, available-for-sale, at fair value | 2,126 | 1.4 | % | 1,932 | 1.4 | % | ||||||||||
Commercial mortgage and other loans, at book value | 6,156 | 4.1 | % | 5,672 | 4.1 | % | ||||||||||
Policy loans, at outstanding balance | 2,665 | 1.7 | % | 2,873 | 2.0 | % | ||||||||||
Other long-term investments (2) | 2,215 | 1.5 | % | 2,892 | 2.1 | % | ||||||||||
Short-term investments | 318 | 0.2 | % | 719 | 0.5 | % | ||||||||||
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Total | 151,743 | 100.0 | % | 139,300 | 100.0 | % | ||||||||||
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December 31, 2012 | December 31, 2011 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Financial Services Businesses excluding Japanese Insurance Operations (1): | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
Public, available-for-sale, at fair value | 100,596 | 56.2 | % | 67,229 | 48.3 | % | ||||||||||
Public, held-to-maturity, at amortized cost | — | 0.0 | % | — | 0.0 | % | ||||||||||
Private, available-for-sale, at fair value | 22,994 | 12.9 | % | 21,918 | 15.7 | % | ||||||||||
Private, held-to-maturity, at amortized cost | — | 0.0 | % | — | 0.0 | % | ||||||||||
Trading account assets supporting insurance liabilities, at fair value | 18,752 | 10.5 | % | 17,749 | 12.8 | % | ||||||||||
Other trading account assets, at fair value | 231 | 0.1 | % | 608 | 0.4 | % | ||||||||||
Equity securities, available-for-sale, at fair value | 2,905 | 1.6 | % | 2,469 | 1.8 | % | ||||||||||
Commercial mortgage and other loans, at book value | 20,467 | 11.4 | % | 19,401 | 13.9 | % | ||||||||||
Policy loans, at outstanding balance | 3,790 | 2.1 | % | 3,390 | 2.4 | % | ||||||||||
Other long-term investments (2) | 4,450 | 2.5 | % | 1,589 | 1.2 | % | ||||||||||
Short-term investments | 4,806 | 2.7 | % | 4,890 | 3.5 | % | ||||||||||
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Total | 178,991 | 100.0 | % | 139,243 | 100.0 | % | ||||||||||
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(1) | Excludes assets classified as “Separate account assets” on our balance sheet. |
(2) | Other long-term investments consist of real estate and non-real estate related investments in joint ventures and partnerships, investment real estate held through direct ownership, derivatives and other miscellaneous investments. |
Page 31
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS
(in millions)
Quarter Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (3) | Amount | Yield (3) | Amount | |||||||||||||||||||||
Financial Services Businesses (1): | ||||||||||||||||||||||||
Fixed maturities | 3.66 | % | 2,035 | 76 | 3.75 | % | 1,849 | (50 | ) | |||||||||||||||
Equity securities | 5.95 | % | 63 | 6 | 5.16 | % | 55 | (22 | ) | |||||||||||||||
Commercial mortgage and other loans | 5.40 | % | 295 | 19 | 5.30 | % | 269 | 27 | ||||||||||||||||
Policy loans | 4.83 | % | 78 | — | 4.66 | % | 72 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.21 | % | 8 | — | 0.28 | % | 9 | — | ||||||||||||||||
Other investments | 4.04 | % | 74 | (593 | ) | 1.75 | % | 31 | (440 | ) | ||||||||||||||
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Gross investment income before investment expenses | 3.69 | % | 2,553 | (492 | ) | 3.69 | % | 2,285 | (485 | ) | ||||||||||||||
Investment expenses | -0.15 | % | (87 | ) | — | -0.12 | % | (58 | ) | — | ||||||||||||||
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Subtotal | 3.54 | % | 2,466 | (492 | ) | 3.57 | % | 2,227 | (485 | ) | ||||||||||||||
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Investment results of other entities and operations (2) | 285 | 92 | 307 | 10 | ||||||||||||||||||||
Less, investment income related to adjusted operating income reconciling items | (38 | ) | (12 | ) | ||||||||||||||||||||
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Total | 2,713 | (400 | ) | 2,522 | (475 | ) | ||||||||||||||||||
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Twelve Months Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (3) | Amount | Yield (3)(4) | Amount | |||||||||||||||||||||
Financial Services Businesses (1): | ||||||||||||||||||||||||
Fixed maturities | 3.72 | % | 7,645 | (148 | ) | 3.91 | % | 7,063 | (164 | ) | ||||||||||||||
Equity securities | 6.14 | % | 249 | (54 | ) | 6.01 | % | 240 | (120 | ) | ||||||||||||||
Commercial mortgage and other loans | 5.36 | % | 1,118 | 30 | 5.47 | % | 1,033 | 74 | ||||||||||||||||
Policy loans | 4.73 | % | 293 | — | 4.75 | % | 277 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.23 | % | 33 | — | 0.39 | % | 49 | 1 | ||||||||||||||||
Other investments | 4.04 | % | 268 | (1,642 | ) | 3.77 | % | 243 | 2,024 | |||||||||||||||
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Gross investment income before investment expenses | 3.74 | % | 9,606 | (1,814 | ) | 3.90 | % | 8,905 | 1,815 | |||||||||||||||
Investment expenses | -0.13 | % | (273 | ) | — | -0.13 | % | (230 | ) | — | ||||||||||||||
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Subtotal | 3.61 | % | 9,333 | (1,814 | ) | 3.77 | % | 8,675 | 1,815 | |||||||||||||||
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Investment results of other entities and operations (2) | 1,175 | 130 | 1,235 | 171 | ||||||||||||||||||||
Less, investment income related to adjusted operating income reconciling items | (138 | ) | (107 | ) | ||||||||||||||||||||
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Total | 10,370 | (1,684 | ) | 9,803 | 1,986 | |||||||||||||||||||
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(1) | Excludes assets of our trading, banking, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives. |
(2) | Includes investment income of trading, banking, asset management operations, commercial loans, and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders. |
(3) | Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation. |
(4) | Yields for the year ended December 31, 2011 are weighted for ten months of income and assets related to the Star and Edison businesses. |
Page 32
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - JAPANESE INSURANCE OPERATIONS
(in millions)
Quarter Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (1) | Amount | Yield (1) | Amount | |||||||||||||||||||||
Japanese Insurance Operations: | ||||||||||||||||||||||||
Fixed maturities | 2.73 | % | 861 | 21 | 2.71 | % | 797 | (86 | ) | |||||||||||||||
Equity securities | 3.14 | % | 15 | 1 | 3.25 | % | 18 | (17 | ) | |||||||||||||||
Commercial mortgage and other loans | 4.14 | % | 63 | 7 | 4.06 | % | 57 | 10 | ||||||||||||||||
Policy loans | 3.74 | % | 26 | — | 3.35 | % | 24 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.13 | % | 1 | — | 0.42 | % | 3 | — | ||||||||||||||||
Other investments (3) | 5.35 | % | 48 | (220 | ) | 1.47 | % | 18 | (9 | ) | ||||||||||||||
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Gross investment income before investment expenses | 2.82 | % | 1,014 | (191 | ) | 2.69 | % | 917 | (102 | ) | ||||||||||||||
Investment expenses | -0.13 | % | (47 | ) | — | -0.12 | % | (40 | ) | — | ||||||||||||||
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Total | 2.69 | % | 967 | (191 | ) | 2.57 | % | 877 | (102 | ) | ||||||||||||||
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Twelve Months Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (1) | Amount | Yield (1)(2) | Amount | |||||||||||||||||||||
Japanese Insurance Operations: | ||||||||||||||||||||||||
Fixed maturities | 2.75 | % | 3,317 | (188 | ) | 2.75 | % | 2,844 | (323 | ) | ||||||||||||||
Equity securities | 3.36 | % | 65 | (88 | ) | 3.42 | % | 73 | (138 | ) | ||||||||||||||
Commercial mortgage and other loans | 4.15 | % | 237 | 16 | 4.16 | % | 212 | 24 | ||||||||||||||||
Policy loans | 3.60 | % | 99 | — | 3.44 | % | 90 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.16 | % | 5 | — | 0.68 | % | 23 | 1 | ||||||||||||||||
Other investments (3) | 4.71 | % | 181 | (142 | ) | 3.72 | % | 163 | 396 | |||||||||||||||
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Gross investment income before investment expenses | 2.83 | % | 3,904 | (402 | ) | 2.82 | % | 3,405 | (40 | ) | ||||||||||||||
Investment expenses | -0.13 | % | (184 | ) | — | -0.13 | % | (159 | ) | — | ||||||||||||||
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Total | 2.70 | % | 3,720 | (402 | ) | 2.69 | % | 3,246 | (40 | ) | ||||||||||||||
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(1) | Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation. |
(2) | Yields for the year ended December 31, 2011 are weighted for ten months of income and assets related to the Star and Edison businesses. |
(3) | Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives. |
Page 33
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
FINANCIAL SERVICES BUSINESSES INVESTMENT RESULTS - EXCLUDING JAPANESE INSURANCE OPERATIONS
(in millions)
Quarter Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (2) | Amount | Yield (2) | Amount | |||||||||||||||||||||
Financial Services Businesses excluding Japanese Insurance Operations (1): | ||||||||||||||||||||||||
Fixed maturities | 4.88 | % | 1,174 | 55 | 5.28 | % | 1,052 | 36 | ||||||||||||||||
Equity securities | 8.38 | % | 48 | 5 | 7.22 | % | 37 | (5 | ) | |||||||||||||||
Commercial mortgage and other loans | 5.90 | % | 232 | 12 | 5.76 | % | 212 | 17 | ||||||||||||||||
Policy loans | 5.64 | % | 52 | — | 5.78 | % | 48 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.24 | % | 7 | — | 0.24 | % | 6 | — | ||||||||||||||||
Other investments | 2.79 | % | 26 | (373 | ) | 2.47 | % | 13 | (431 | ) | ||||||||||||||
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Gross investment income before investment expenses | 4.62 | % | 1,539 | (301 | ) | 4.90 | % | 1,368 | (383 | ) | ||||||||||||||
Investment expenses | -0.16 | % | (40 | ) | — | -0.12 | % | (18 | ) | — | ||||||||||||||
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Total | 4.46 | % | 1,499 | (301 | ) | 4.78 | % | 1,350 | (383 | ) | ||||||||||||||
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Twelve Months Ended December 31 | ||||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Investment Income | Realized Gains / (Losses) |
Investment Income | Realized Gains / (Losses) | |||||||||||||||||||||
Yield (2) | Amount | Yield (2) | Amount | |||||||||||||||||||||
Financial Services Businesses excluding Japanese Insurance Operations (1): | ||||||||||||||||||||||||
Fixed maturities | 5.09 | % | 4,328 | 40 | 5.44 | % | 4,219 | 159 | ||||||||||||||||
Equity securities | 8.70 | % | 184 | 34 | 9.04 | % | 167 | 18 | ||||||||||||||||
Commercial mortgage and other loans | 5.82 | % | 881 | 14 | 5.94 | % | 821 | 50 | ||||||||||||||||
Policy loans | 5.62 | % | 194 | — | 5.81 | % | 187 | — | ||||||||||||||||
Short-term investments and cash equivalents | 0.25 | % | 28 | — | 0.28 | % | 26 | — | ||||||||||||||||
Other investments | 3.13 | % | 87 | (1,500 | ) | 3.86 | % | 80 | 1,628 | |||||||||||||||
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Gross investment income before investment expenses | 4.80 | % | 5,702 | (1,412 | ) | 5.11 | % | 5,500 | 1,855 | |||||||||||||||
Investment expenses | -0.13 | % | (89 | ) | — | -0.12 | % | (71 | ) | — | ||||||||||||||
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Total | 4.67 | % | 5,613 | (1,412 | ) | 4.99 | % | 5,429 | 1,855 | |||||||||||||||
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(1) | Excludes assets of our trading, banking, commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders, assets of our asset management operations, including assets managed for third parties, and those assets classified as “separate account assets” on our balance sheet. Realized gains / (losses) for Other investments includes changes in fair value of product-related and other derivatives and embedded derivatives. |
(2) | Yields are based on net investment income as reported under U.S. GAAP and do not include adjustments, such as settlements of duration management swaps that are included in adjusted operating income. Yields are annualized, for interim periods, and are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income and assets related to commercial loans and trading account assets supporting insurance liabilities where the investment results generally accrue to contractholders and investment income on assets other than those included in invested assets. Prior period’s yields are presented on a basis consistent with the current presentation. |
Page 34
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED FINANCIAL HIGHLIGHTS
(in millions, except per share data)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Financial Services Businesses: | ||||||||||||||||||||||||||||||||||||
Pre-tax adjusted operating income (loss) by division: | ||||||||||||||||||||||||||||||||||||
2,021 | 1,232 | U.S. Retirement Solutions and Investment Management Division | 608 | 613 | 48 | 769 | 705 | 304 | 503 | |||||||||||||||||||||||||||
656 | 817 | U.S. Individual Life and Group Insurance Division | 133 | 176 | 156 | 180 | 72 | 94 | 147 | |||||||||||||||||||||||||||
1,887 | 1,651 | International Insurance Division | 618 | 491 | 652 | 502 | 597 | 678 | 782 | |||||||||||||||||||||||||||
(936 | ) | (724 | ) | Corporate and other operations | (259 | ) | (229 | ) | (337 | ) | (285 | ) | (326 | ) | (225 | ) | (413 | ) | ||||||||||||||||||
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3,628 | 2,976 | Total pre-tax adjusted operating income | 1,100 | 1,051 | 519 | 1,166 | 1,048 | 851 | 1,019 | |||||||||||||||||||||||||||
950 | 727 | Income taxes, applicable to adjusted operating income | 296 | 278 | 106 | 311 | 283 | 205 | 270 | |||||||||||||||||||||||||||
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2,678 | 2,249 | Financial Services Businesses after-tax adjusted operating income | 804 | 773 | 413 | 855 | 765 | 646 | 749 | |||||||||||||||||||||||||||
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Reconciling items: | ||||||||||||||||||||||||||||||||||||
(27 | ) | (1,669 | ) | Realized investment gains (losses), net, and related charges and adjustments | (375 | ) | 1 | 1,817 | (596 | ) | (1,838 | ) | 2,030 | (1,303 | ) | |||||||||||||||||||||
501 | 1,601 | Investment gains (losses) on trading account assets supporting insurance liabilities, net | (17 | ) | 177 | 10 | 53 | 234 | 4 | 264 | ||||||||||||||||||||||||||
(631 | ) | (899 | ) | Change in experience-rated contractholder liabilities due to asset value changes | 34 | (178 | ) | 68 | (47 | ) | (246 | ) | 54 | (254 | ) | |||||||||||||||||||||
18 | 2,117 | Divested businesses | (4 | ) | 10 | 43 | 52 | 4 | 24 | (685 | ) | |||||||||||||||||||||||||
(95 | ) | (2,364 | ) | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | (133 | ) | 19 | (87 | ) | 12 | 5 | 8 | (40 | ) | ||||||||||||||||||||||
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(234 | ) | (1,214 | ) | Total reconciling items, before income taxes | (495 | ) | 29 | 1,851 | (526 | ) | (1,841 | ) | 2,120 | (2,018 | ) | |||||||||||||||||||||
41 | (657 | ) | Income taxes, not applicable to adjusted operating income | (144 | ) | 14 | 745 | (186 | ) | (113 | ) | 536 | (623 | ) | ||||||||||||||||||||||
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(275 | ) | (557 | ) | Total reconciling items, after income taxes | (351 | ) | 15 | 1,106 | (340 | ) | (1,728 | ) | 1,584 | (1,395 | ) | |||||||||||||||||||||
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2,403 | 1,692 | Income (loss) from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures | 453 | 788 | 1,519 | 515 | (963 | ) | 2,230 | (646 | ) | |||||||||||||||||||||||||
71 | 1,557 | Equity in earnings of operating joint ventures, net of taxes and earnings from continuing operations attributable to noncontrolling interests | 79 | (19 | ) | 57 | (7 | ) | (4 | ) | (9 | ) | 20 | |||||||||||||||||||||||
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2,474 | 3,249 | Income (loss) from continuing operations attributable to Prudential Financial, Inc. | 532 | 769 | 1,576 | 508 | (967 | ) | 2,221 | (626 | ) | |||||||||||||||||||||||||
11 | (34 | ) | Earnings from continuing operations attributable to noncontrolling interests | 25 | 29 | 10 | 8 | 11 | 15 | 25 | ||||||||||||||||||||||||||
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2,485 | 3,215 | Income (loss) from continuing operations (after-tax) of Financial Services Businesses | 557 | 798 | 1,586 | 516 | (956 | ) | 2,236 | (601 | ) | |||||||||||||||||||||||||
32 | (19 | ) | Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc. | 14 | 16 | (9 | ) | 14 | 7 | 8 | (1 | ) | ||||||||||||||||||||||||
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2,517 | 3,196 | Net income (loss) of Financial Services Businesses | 571 | 814 | 1,577 | 530 | (949 | ) | 2,244 | (602 | ) | |||||||||||||||||||||||||
11 | (34 | ) | Less: Income (loss) attributable to noncontrolling interests | 25 | 29 | 10 | 8 | 11 | 15 | 25 | ||||||||||||||||||||||||||
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2,506 | 3,230 | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. | 546 | 785 | 1,567 | 522 | (960 | ) | 2,229 | (627 | ) | |||||||||||||||||||||||||
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11.2% | 11.4% | Operating Return on Average Equity (based on adjusted operating income) | 12.5% | 11.7% | 6.1% | 12.2% | 11.4% | 9.5% | 10.6% | |||||||||||||||||||||||||||
Reconciliation to Consolidated Net Income Attributable to Prudential Financial, Inc: | ||||||||||||||||||||||||||||||||||||
2,506 | 3,230 | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. (above) | 546 | 785 | 1,567 | 522 | (960 | ) | 2,229 | (627 | ) | |||||||||||||||||||||||||
495 | (286 | ) | Net income (loss) of Closed Block Business attributable to Prudential Financial, Inc. | 22 | 10 | 32 | 82 | 21 | (5 | ) | 43 | |||||||||||||||||||||||||
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3,001 | 2,944 | Consolidated net income (loss) attributable to Prudential Financial, Inc. | 568 | 795 | 1,599 | 604 | (939 | ) | 2,224 | (584 | ) | |||||||||||||||||||||||||
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Page 35
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED FINANCIAL HIGHLIGHTS
(in millions, except per share data)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Earnings per share of Common Stock (diluted): (1) | ||||||||||||||||||||||||||||||||||||
5.67 | 5.07 | Financial Services Businesses after-tax adjusted operating income | 1.63 | 1.57 | 0.86 | 1.78 | 1.61 | 1.38 | 1.59 | |||||||||||||||||||||||||||
Reconciling items: | ||||||||||||||||||||||||||||||||||||
(0.06 | ) | (3.72 | ) | Realized investment gains (losses), net, and related charges and adjustments | (0.76 | ) | — | 3.71 | (1.25 | ) | (3.85 | ) | 4.29 | (2.76 | ) | |||||||||||||||||||||
1.05 | 3.57 | Investment gains (losses) on trading account assets supporting insurance liabilities, net | (0.03 | ) | 0.36 | 0.02 | 0.11 | 0.49 | 0.01 | 0.56 | ||||||||||||||||||||||||||
(1.33 | ) | (2.01 | ) | Change in experience-rated contractholder liabilities due to asset value changes | 0.07 | (0.36 | ) | 0.14 | (0.10 | ) | (0.52 | ) | 0.11 | (0.54 | ) | |||||||||||||||||||||
0.04 | 4.72 | Divested businesses | (0.01 | ) | 0.02 | 0.09 | 0.11 | 0.01 | 0.05 | (1.45 | ) | |||||||||||||||||||||||||
— | (0.02 | ) | Difference in earnings allocated to participating unvested share-based payment awards | 0.01 | — | (0.03 | ) | — | 0.02 | (0.03 | ) | 0.02 | ||||||||||||||||||||||||
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(0.30 | ) | 2.54 | Total reconciling items, before income taxes | (0.72 | ) | 0.02 | 3.93 | (1.13 | ) | (3.85 | ) | 4.43 | (4.17 | ) | ||||||||||||||||||||||
0.12 | 0.34 | Income taxes, not applicable to adjusted operating income | (0.18 | ) | 0.03 | 1.59 | (0.40 | ) | (0.20 | ) | 1.14 | (1.24 | ) | |||||||||||||||||||||||
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(0.42 | ) | 2.20 | Total reconciling items, after income taxes | (0.54 | ) | (0.01 | ) | 2.34 | (0.73 | ) | (3.65 | ) | 3.29 | (2.93 | ) | |||||||||||||||||||||
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5.25 | 7.27 | Income (loss) from continuing operations (after-tax) of Financial Services Businesses attributable to Prudential Financial, Inc. | 1.09 | 1.56 | 3.20 | 1.05 | (2.04 | ) | 4.67 | (1.34 | ) | |||||||||||||||||||||||||
0.07 | (0.04 | ) | Income (loss) from discontinued operations, net of taxes, attributable to Prudential Financial, Inc. | 0.03 | 0.03 | (0.02 | ) | 0.03 | 0.01 | 0.02 | — | |||||||||||||||||||||||||
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5.32 | 7.23 | Net income (loss) of Financial Services Businesses attributable to Prudential Financial, Inc. | 1.12 | 1.59 | 3.18 | 1.08 | (2.03 | ) | 4.69 | (1.34 | ) | |||||||||||||||||||||||||
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466.8 | 444.6 | Weighted average number of outstanding Common shares (basic) | 484.9 | 486.0 | 481.2 | 469.2 | 469.2 | 466.1 | 464.4 | |||||||||||||||||||||||||||
475.4 | 448.2 | Weighted average number of outstanding Common shares (diluted) (2) | 493.9 | 494.8 | 489.3 | 477.0 | 477.5 | 473.5 | 471.8 | |||||||||||||||||||||||||||
36 | 43 | Direct equity adjustments for earnings per share calculation | 9 | 8 | 8 | (1 | ) | 8 | 8 | 4 | ||||||||||||||||||||||||||
17 | 5 | Earnings related to interest, net of tax, on exchangeable surplus notes (2) | 4 | 5 | 4 | 4 | 4 | 5 | 4 | |||||||||||||||||||||||||||
Earnings allocated to participating unvested share-based payment awards for earnings per share calculation | ||||||||||||||||||||||||||||||||||||
34 | 26 | Financial Services Businesses after-tax adjusted operating income | 11 | 10 | 6 | 11 | 8 | 6 | 8 | |||||||||||||||||||||||||||
32 | 37 | Income from continuing operations (after-tax) of Financial Services Businesses | 7 | 11 | 21 | 9 | 0 | 21 | 0 |
(1) | Diluted share count used in the diluted earnings per share calculation for GAAP measures is equal to weighted average basic common shares for the three months ended March 31, 2012, September 30, 2012, and December 31, 2012 as all potential common shares are anti-dilutive due to the loss from continuing operations available to holders of common stock after direct equity adjustment. |
Page 36
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED OPERATIONS HIGHLIGHTS
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Assets Under Management and Administration ($ billions) (1) (2): | ||||||||||||||||||||||||||||||||||||
Assets Under Management: | ||||||||||||||||||||||||||||||||||||
Managed by U.S. Retirement Solutions and Investment Management Division: | ||||||||||||||||||||||||||||||||||||
Asset Management Segment - Investment Management & Advisory Services | ||||||||||||||||||||||||||||||||||||
237.8 | 190.8 | Institutional customers | 248.9 | 258.9 | 261.2 | 271.8 | 286.1 | 289.2 | 303.1 | |||||||||||||||||||||||||||
110.6 | 91.7 | Retail customers | 118.7 | 119.8 | 119.4 | 119.3 | 125.1 | 131.7 | 133.9 | |||||||||||||||||||||||||||
257.4 | 232.4 | General account | 298.2 | 305.2 | 324.2 | 326.7 | 321.3 | 331.4 | 340.7 | |||||||||||||||||||||||||||
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605.8 | 514.9 | Total Investment Management and Advisory Services | 665.8 | 683.9 | 704.8 | 717.8 | 732.5 | 752.3 | 777.7 | |||||||||||||||||||||||||||
149.8 | 122.3 | Non-proprietary assets under management | 161.7 | 167.3 | 136.1 | 152.2 | 176.8 | 176.2 | 193.0 | |||||||||||||||||||||||||||
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755.6 | 637.2 | Total managed by U.S. Retirement Solutions and Investment Management Division | 827.5 | 851.2 | 840.9 | 870.0 | 909.3 | 928.5 | 970.7 | |||||||||||||||||||||||||||
13.1 | 12.4 | Managed by U.S. Individual Life and Group Insurance Division | 13.3 | 13.5 | 13.6 | 13.8 | 14.8 | 13.6 | 13.7 | |||||||||||||||||||||||||||
15.3 | 17.7 | Managed by International Insurance Division | 17.7 | 18.5 | 16.8 | 16.9 | 18.8 | 19.0 | 20.5 | |||||||||||||||||||||||||||
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784.0 | 667.3 | Total assets under management | 858.5 | 883.2 | 871.3 | 900.7 | 942.9 | 961.1 | 1,004.9 | |||||||||||||||||||||||||||
84.1 | 119.5 | Client assets under administration | 86.6 | 89.4 | 82.6 | 85.7 | 89.2 | 87.1 | 88.4 | |||||||||||||||||||||||||||
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868.1 | 786.8 | Total assets under management and administration | 945.1 | 972.6 | 953.9 | 986.4 | 1,032.1 | 1,048.2 | 1,093.3 | |||||||||||||||||||||||||||
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(1) | As of end of period. |
(2) | At fair market value. |
Page 37
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - FINANCIAL SERVICES BUSINESSES
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
14,912 | 12,925 | Premiums | 4,741 | 5,419 | 5,332 | 5,546 | 5,980 | 6,695 | 8,263 | |||||||||||||||||||||||||||
3,482 | 3,032 | Policy charges and fee income | 982 | 1,038 | 979 | 1,033 | 1,078 | 1,085 | 1,251 | |||||||||||||||||||||||||||
8,501 | 8,144 | Net investment income | 2,277 | 2,496 | 2,508 | 2,522 | 2,500 | 2,526 | 2,631 | |||||||||||||||||||||||||||
3,192 | 2,279 | Asset management fees, commissions and other income | 1,039 | 1,035 | 952 | 1,034 | 937 | 941 | 1,107 | |||||||||||||||||||||||||||
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30,087 | 26,380 | Total revenues | 9,039 | 9,988 | 9,771 | 10,135 | 10,495 | 11,247 | 13,252 | |||||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
14,557 | 12,382 | Insurance and annuity benefits | 4,559 | 5,074 | 5,340 | 4,946 | 5,484 | 6,404 | 8,229 | |||||||||||||||||||||||||||
3,418 | 3,376 | Interest credited to policyholders’ account balances | 829 | 934 | 1,040 | 953 | 948 | 971 | 941 | |||||||||||||||||||||||||||
1,049 | 955 | Interest expense | 279 | 289 | 296 | 299 | 308 | 311 | 311 | |||||||||||||||||||||||||||
(2,432 | ) | (2,135 | ) | Deferral of acquisition costs | (732 | ) | (757 | ) | (777 | ) | (761 | ) | (809 | ) | (911 | ) | (882 | ) | ||||||||||||||||||
1,027 | 937 | Amortization of acquisition costs | 356 | 423 | 408 | 378 | 406 | 513 | 466 | |||||||||||||||||||||||||||
8,840 | 7,889 | General and administrative expenses | 2,648 | 2,974 | 2,945 | 3,154 | 3,110 | 3,108 | 3,168 | |||||||||||||||||||||||||||
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26,459 | 23,404 | Total benefits and expenses | 7,939 | 8,937 | 9,252 | 8,969 | 9,447 | 10,396 | 12,233 | |||||||||||||||||||||||||||
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3,628 | 2,976 | Adjusted operating income before income taxes | 1,100 | 1,051 | 519 | 1,166 | 1,048 | 851 | 1,019 | |||||||||||||||||||||||||||
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Reconciling items: | ||||||||||||||||||||||||||||||||||||
152 | (1,213 | ) | Realized investment gains (losses), net, and related adjustments | (365 | ) | 155 | 3,385 | (672 | ) | (2,716 | ) | 3,058 | (1,951 | ) | ||||||||||||||||||||||
(179 | ) | (456 | ) | Related charges | (10 | ) | (154 | ) | (1,568 | ) | 76 | 878 | (1,028 | ) | 648 | |||||||||||||||||||||
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(27 | ) | (1,669 | ) | Total realized investment gains (losses), net, and related charges and adjustments | (375 | ) | 1 | 1,817 | (596 | ) | (1,838 | ) | 2,030 | (1,303 | ) | |||||||||||||||||||||
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501 | 1,601 | Investment gains on trading account assets supporting insurance liabilities, net | (17 | ) | 177 | 10 | 53 | 234 | 4 | 264 | ||||||||||||||||||||||||||
(631 | ) | (899 | ) | Change in experience-rated contractholder liabilities due to asset value changes | 34 | (178 | ) | 68 | (47 | ) | (246 | ) | 54 | (254 | ) | |||||||||||||||||||||
18 | 2,117 | Divested businesses | (4 | ) | 10 | 43 | 52 | 4 | 24 | (685 | ) | |||||||||||||||||||||||||
(95 | ) | (2,364 | ) | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | (133 | ) | 19 | (87 | ) | 12 | 5 | 8 | (40 | ) | ||||||||||||||||||||||
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(234 | ) | (1,214 | ) | Total reconciling items, before income taxes | (495 | ) | 29 | 1,851 | (526 | ) | (1,841 | ) | 2,120 | (2,018 | ) | |||||||||||||||||||||
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3,394 | 1,762 | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | 605 | 1,080 | 2,370 | 640 | (793 | ) | 2,971 | (999 | ) | |||||||||||||||||||||||||
991 | 70 | Income tax expense | 152 | 292 | 851 | 125 | 170 | 741 | (353 | ) | ||||||||||||||||||||||||||
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2,403 | 1,692 | Income (loss) from continuing operations before equity in earnings of operating joint ventures | 453 | 788 | 1,519 | 515 | (963 | ) | 2,230 | (646 | ) | |||||||||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments; investment gains, net of losses, on trading account assets supporting insurance liabilities, and revenues of divested businesses, and include revenues representing equity in earnings of operating joint ventures other than those classified as divested businesses. Benefits and expenses exclude charges related to realized investment gains, net of losses; change in experience-rated contractholder liabilities due to asset value changes and benefits and expenses of divested businesses and include charges for income attributable to non controlling interests. |
Page 38
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
1,232 | 690 | Premiums | 211 | 244 | 189 | 257 | 116 | 248 | 161 | |||||||||||||||||||||||||||
1,662 | 1,189 | Policy charges and fee income | 492 | 520 | 519 | 512 | 544 | 556 | 584 | |||||||||||||||||||||||||||
4,237 | 4,381 | Net investment income | 1,044 | 1,034 | 997 | 1,011 | 999 | 983 | 1,002 | |||||||||||||||||||||||||||
3,252 | 2,282 | Asset management fees, commissions and other income | 944 | 1,074 | 911 | 1,081 | 973 | 929 | 1,087 | |||||||||||||||||||||||||||
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10,383 | 8,542 | Total revenues | 2,691 | 2,872 | 2,616 | 2,861 | 2,632 | 2,716 | 2,834 | |||||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
2,139 | 1,469 | Insurance and annuity benefits | 426 | 530 | 698 | 416 | 251 | 611 | 736 | |||||||||||||||||||||||||||
2,415 | 2,525 | Interest credited to policyholders’ account balances | 550 | 563 | 623 | 549 | 544 | 568 | 504 | |||||||||||||||||||||||||||
96 | 68 | Interest expense | 34 | 35 | 35 | 35 | 35 | 39 | 37 | |||||||||||||||||||||||||||
(1,154 | ) | (893 | ) | Deferral of acquisition costs | (361 | ) | (249 | ) | (243 | ) | (240 | ) | (265 | ) | (288 | ) | (305 | ) | ||||||||||||||||||
272 | 243 | Amortization of acquisition costs | 114 | 141 | 249 | 98 | 97 | 168 | (20 | ) | ||||||||||||||||||||||||||
4,594 | 3,898 | General and administrative expenses | 1,320 | 1,239 | 1,206 | 1,234 | 1,265 | 1,314 | 1,379 | |||||||||||||||||||||||||||
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8,362 | 7,310 | Total benefits and expenses | 2,083 | 2,259 | 2,568 | 2,092 | 1,927 | 2,412 | 2,331 | |||||||||||||||||||||||||||
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2,021 | 1,232 | Adjusted operating income before income taxes | 608 | 613 | 48 | 769 | 705 | 304 | 503 | |||||||||||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 39
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - ASSET MANAGEMENT SEGMENT
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
— | — | Premiums | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
— | — | Policy charges and fee income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
121 | 93 | Net investment income | 38 | 32 | 16 | 32 | 23 | 15 | 38 | |||||||||||||||||||||||||||
1,884 | 1,275 | Asset management fees, commissions and other income | 549 | 659 | 524 | 681 | 544 | 491 | 616 | |||||||||||||||||||||||||||
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2,005 | 1,368 | Total revenues | 587 | 691 | 540 | 713 | 567 | 506 | 654 | |||||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
— | — | Insurance and annuity benefits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
— | — | Interest credited to policyholders’ account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
13 | 26 | Interest expense | 3 | 4 | 3 | 3 | 3 | 5 | 3 | |||||||||||||||||||||||||||
(24 | ) | (22 | ) | Deferral of acquisition costs | (7 | ) | (6 | ) | (5 | ) | (5 | ) | (7 | ) | (6 | ) | (7 | ) | ||||||||||||||||||
25 | 18 | Amortization of acquisition costs | 6 | 6 | 7 | 6 | 6 | 6 | 6 | |||||||||||||||||||||||||||
1,485 | 1,277 | General and administrative expenses | 423 | 452 | 406 | 453 | 437 | 451 | 466 | |||||||||||||||||||||||||||
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1,499 | 1,299 | Total benefits and expenses | 425 | 456 | 411 | 457 | 439 | 456 | 468 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
506 | 69 | Adjusted operating income before income taxes | 162 | 235 | 129 | 256 | 128 | 50 | 186 | |||||||||||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related adjustments. Benefits and expenses include charges for income attributable to noncontrolling interests. |
Page 40
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - INTERNATIONAL INSURANCE DIVISION
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
9,094 | 7,830 | Premiums | 3,256 | 3,903 | 3,838 | 4,018 | 4,605 | 5,164 | 6,814 | |||||||||||||||||||||||||||
407 | 374 | Policy charges and fee income | 113 | 143 | 150 | 146 | 152 | 150 | 139 | |||||||||||||||||||||||||||
2,457 | 2,158 | Net investment income | 761 | 955 | 1,020 | 1,018 | 1,014 | 1,030 | 1,119 | |||||||||||||||||||||||||||
113 | 53 | Asset management fees, commissions and other income | 151 | 9 | 90 | (4 | ) | 46 | 62 | 82 | ||||||||||||||||||||||||||
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12,071 | 10,415 | Total revenues | 4,281 | 5,010 | 5,098 | 5,178 | 5,817 | 6,406 | 8,154 | |||||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
7,315 | 6,139 | Insurance and annuity benefits | 2,706 | 3,170 | 3,034 | 3,175 | 3,752 | 4,303 | 5,982 | |||||||||||||||||||||||||||
562 | 480 | Interest credited to policyholders’ account balances | 161 | 249 | 292 | 276 | 278 | 270 | 303 | |||||||||||||||||||||||||||
3 | 4 | Interest expense | — | 1 | — | — | 1 | (1 | ) | 1 | ||||||||||||||||||||||||||
(1,014 | ) | (880 | ) | Deferral of acquisition costs | (321 | ) | (446 | ) | (467 | ) | (450 | ) | (470 | ) | (542 | ) | (494 | ) | ||||||||||||||||||
619 | 571 | Amortization of acquisition costs | 186 | 219 | 235 | 240 | 260 | 284 | 279 | |||||||||||||||||||||||||||
2,699 | 2,450 | General and administrative expenses | 931 | 1,326 | 1,352 | 1,435 | 1,399 | 1,414 | 1,301 | |||||||||||||||||||||||||||
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10,184 | 8,764 | Total benefits and expenses | 3,663 | 4,519 | 4,446 | 4,676 | 5,220 | 5,728 | 7,372 | |||||||||||||||||||||||||||
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1,887 | 1,651 | Adjusted operating income before income taxes | 618 | 491 | 652 | 502 | 597 | 678 | 782 | |||||||||||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 41
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - GIBRALTAR LIFE & OTHER OPERATIONS
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
3,446 | 2,855 | Premiums | 1,601 | 2,391 | 2,226 | 2,386 | 2,779 | 3,474 | 5,087 | |||||||||||||||||||||||||||
82 | 79 | Policy charges and fee income | 23 | 52 | 52 | 54 | 58 | 56 | 56 | |||||||||||||||||||||||||||
1,201 | 1,089 | Net investment income | 410 | 608 | 642 | 643 | 628 | 649 | 701 | |||||||||||||||||||||||||||
90 | (1 | ) | Asset management fees, commissions and other income | 150 | 15 | 102 | 10 | 35 | 35 | 73 | ||||||||||||||||||||||||||
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4,819 | 4,022 | Total revenues | 2,184 | 3,066 | 3,022 | 3,093 | 3,500 | 4,214 | 5,917 | |||||||||||||||||||||||||||
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Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
2,721 | 2,238 | Insurance and annuity benefits | 1,317 | 1,941 | 1,709 | 1,824 | 2,262 | 2,901 | 4,546 | |||||||||||||||||||||||||||
349 | 294 | Interest credited to policyholders’ account balances | 99 | 193 | 226 | 215 | 210 | 209 | 223 | |||||||||||||||||||||||||||
1 | 1 | Interest expense | 0 | 1 | — | 1 | 1 | (1 | ) | 1 | ||||||||||||||||||||||||||
(379 | ) | (281 | ) | Deferral of acquisition costs | (129 | ) | (269 | ) | (282 | ) | (266 | ) | (258 | ) | (316 | ) | (304 | ) | ||||||||||||||||||
216 | 186 | Amortization of acquisition costs | 73 | 107 | 114 | 123 | 134 | 160 | 203 | |||||||||||||||||||||||||||
1,173 | 992 | General and administrative expenses | 506 | 917 | 934 | 994 | 936 | 957 | 859 | |||||||||||||||||||||||||||
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4,081 | 3,430 | Total benefits and expenses | 1,866 | 2,890 | 2,701 | 2,891 | 3,285 | 3,910 | 5,528 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
738 | 592 | Adjusted operating income before income taxes | 318 | 176 | 321 | 202 | 215 | 304 | 389 | |||||||||||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 42
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED COMBINED STATEMENTS OF OPERATIONS - CORPORATE AND OTHER OPERATIONS
(in millions)
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Revenues (1): | ||||||||||||||||||||||||||||||||||||
(27 | ) | (22 | ) | Premiums | (10 | ) | (11 | ) | 4 | (5 | ) | (10 | ) | (7 | ) | (7 | ) | |||||||||||||||||||
(42 | ) | (39 | ) | Policy charges and fee income | (8 | ) | (9 | ) | (9 | ) | (9 | ) | (9 | ) | (10 | ) | (9 | ) | ||||||||||||||||||
330 | 244 | Net investment income | 91 | 117 | 98 | 104 | 87 | 111 | 101 | |||||||||||||||||||||||||||
(485 | ) | (421 | ) | Asset management fees, commissions and other income | (130 | ) | (130 | ) | (126 | ) | (147 | ) | (189 | ) | (164 | ) | (189 | ) | ||||||||||||||||||
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(224 | ) | (238 | ) | Total revenues | (57 | ) | (33 | ) | (33 | ) | (57 | ) | (121 | ) | (70 | ) | (104 | ) | ||||||||||||||||||
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| |||||||||||||||||||
Benefits and Expenses (1): | ||||||||||||||||||||||||||||||||||||
45 | 25 | Insurance and annuity benefits | 2 | 7 | 149 | (12 | ) | 8 | 38 | 78 | ||||||||||||||||||||||||||
(70 | ) | (121 | ) | Interest credited to policyholders’ account balances | (10 | ) | (8 | ) | (9 | ) | (7 | ) | (7 | ) | (6 | ) | (5 | ) | ||||||||||||||||||
788 | 702 | Interest expense | 200 | 205 | 213 | 191 | 195 | 193 | 190 | |||||||||||||||||||||||||||
63 | 57 | Deferral of acquisition costs | 22 | 16 | 15 | 14 | 15 | 19 | 20 | |||||||||||||||||||||||||||
(40 | ) | (36 | ) | Amortization of acquisition costs | (12 | ) | (15 | ) | (22 | ) | (9 | ) | (8 | ) | (16 | ) | (3 | ) | ||||||||||||||||||
(74 | ) | (141 | ) | General and administrative expenses | — | (9 | ) | (42 | ) | 51 | 2 | (73 | ) | 29 | ||||||||||||||||||||||
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| |||||||||||||||||||
712 | 486 | Total benefits and expenses | 202 | 196 | 304 | 228 | 205 | 155 | 309 | |||||||||||||||||||||||||||
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| |||||||||||||||||||
(936 | ) | (724 | ) | Adjusted operating loss before income taxes | (259 | ) | (229 | ) | (337 | ) | (285 | ) | (326 | ) | (225 | ) | (413 | ) | ||||||||||||||||||
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(1) | Revenues exclude realized investment gains, net of losses and related charges and adjustments, investment gains, net of losses, on trading account assets supporting insurance liabilities and include revenues representing equity in earnings of operating joint ventures. Benefits and expenses exclude charges related to realized investment gains, net of losses and change in experience-rated contractholder liabilities due to asset value changes and include charges for income attributable to non controlling interests. |
Page 43
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED SUPPLEMENTARY INFORMATION - INTERNATIONAL INSURANCE SEGMENT
(dollar amounts in millions, unless otherwise noted)
Year ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||
2010 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |||||||||||||||||||||||||
Constant exchange rate basis (1): | ||||||||||||||||||||||||||||||||
Net premiums, policy charges and fee income: | ||||||||||||||||||||||||||||||||
4,852 | Japan, excluding Gibraltar Life | 1,404 | 1,224 | 1,282 | 1,283 | 1,526 | 1,394 | 1,398 | ||||||||||||||||||||||||
3,841 | Gibraltar Life | 1,673 | 2,490 | 2,247 | 2,364 | 2,771 | 3,559 | 5,076 | ||||||||||||||||||||||||
1,439 | All other countries | 350 | 366 | 371 | 403 | 377 | 390 | 388 | ||||||||||||||||||||||||
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| |||||||||||||||||
10,132 | Total | 3,427 | 4,080 | 3,900 | 4,050 | 4,674 | 5,343 | 6,862 | ||||||||||||||||||||||||
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Annualized new business premiums: | ||||||||||||||||||||||||||||||||
731 | Japan, excluding Gibraltar Life | 228 | 179 | 206 | 202 | 306 | 316 | 178 | ||||||||||||||||||||||||
928 | Gibraltar Life | 380 | 547 | 562 | 542 | 459 | 769 | 670 | ||||||||||||||||||||||||
270 | All other countries | 77 | 74 | 75 | 85 | 85 | 86 | 93 | ||||||||||||||||||||||||
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| |||||||||||||||||
1,929 | Total | 685 | 800 | 843 | 829 | 850 | 1,171 | 941 | ||||||||||||||||||||||||
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Annualized new business premiums by distribution channel: | ||||||||||||||||||||||||||||||||
1,001 | Life Planners | 305 | 253 | 281 | 287 | 391 | 402 | 271 | ||||||||||||||||||||||||
529 | Gibraltar Life Advisors | 162 | 271 | 266 | 273 | 189 | 318 | 203 | ||||||||||||||||||||||||
341 | Banks | 137 | 143 | 171 | 149 | 190 | 261 | 429 | ||||||||||||||||||||||||
58 | Independent Agency | 81 | 133 | 125 | 120 | 80 | 190 | 38 | ||||||||||||||||||||||||
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| |||||||||||||||||
1,929 | Total | 685 | 800 | 843 | 829 | 850 | 1,171 | 941 | ||||||||||||||||||||||||
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Face amount of individual policies in force at end of period (in billions) (1)(2): | ||||||||||||||||||||||||||||||||
338 | Japan, excluding Gibraltar Life | 341 | 342 | 344 | 346 | 350 | 354 | 356 | ||||||||||||||||||||||||
245 | Gibraltar Life (3) | 399 | 397 | 399 | 401 | 400 | 400 | 406 | ||||||||||||||||||||||||
100 | All other countries | 101 | 102 | 103 | 105 | 105 | 105 | 106 | ||||||||||||||||||||||||
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| |||||||||||||||||
683 | Total | 841 | 841 | 846 | 852 | 855 | 859 | 868 | ||||||||||||||||||||||||
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(1) | Foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 80 per U.S. dollar; Korean won 1160 per U.S. dollar. U.S. denominated activity is included based on the amounts as transacted in U.S. dollars. |
(2) | Direct business only; policy count includes annuities. |
(3) | Includes Star/Edison business from February 1, 2011 date of acquisition, amounting to face amount of $135 billion and 3.529 million individual policies as of that date. |
Page 44
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED SUPPLEMENTARY U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT
Supplementary Revenue Information (in millions): | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | % Change | 2011 | 2012 | |||||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||||||
Analysis of revenues by type: | ||||||||||||||||||||||||||||||||||||||||
1,326 | 1,097 | 21% | Asset management fees | 374 | 387 | 386 | 394 | 403 | 407 | 424 | ||||||||||||||||||||||||||||||
210 | (79 | ) | 366% | Other related revenues | 57 | 149 | 35 | 98 | 30 | (25 | ) | 113 | ||||||||||||||||||||||||||||
469 | 350 | 34% | Service, distribution and other revenues | 156 | 155 | 119 | 221 | 134 | 124 | 117 | ||||||||||||||||||||||||||||||
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2,005 | 1,368 | 47% | Total Asset Management segment revenues | 587 | 691 | 540 | 713 | 567 | 506 | 654 | ||||||||||||||||||||||||||||||
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Analysis of asset management fees by source: | ||||||||||||||||||||||||||||||||||||||||
639 | 522 | 22% | Institutional customers | 178 | 182 | 182 | 187 | 190 | 190 | 194 | ||||||||||||||||||||||||||||||
372 | 288 | 29% | Retail customers | 111 | 115 | 113 | 113 | 121 | 124 | 132 | ||||||||||||||||||||||||||||||
315 | 287 | 10% | General account | 85 | 90 | 91 | 94 | 92 | 93 | 98 | ||||||||||||||||||||||||||||||
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1,326 | 1,097 | 21% | Total asset management fees | 374 | 387 | 386 | 394 | 403 | 407 | 424 | ||||||||||||||||||||||||||||||
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Supplementary Assets Under Management Information (in billions): | ||||||||||||||||||||||||||||||||||||||||
Years ended December 31 | 2011 | 2012 | ||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
53.3 | 49.8 | Institutional customers | 54.7 | 53.2 | 44.1 | 46.3 | 53.3 | 48.0 | 51.5 | |||||||||||||||||||||||||||||||
73.9 | 59.3 | Retail customers | 80.6 | 80.0 | 64.9 | 71.7 | 83.9 | 80.9 | 86.3 | |||||||||||||||||||||||||||||||
7.7 | 6.6 | General account | 8.1 | 9.1 | 8.4 | 8.7 | 9.2 | 8.5 | 9.0 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||
134.9 | 115.7 | 143.4 | 142.3 | 117.4 | 126.7 | 146.4 | 137.4 | 146.8 | ||||||||||||||||||||||||||||||||
Fixed Income: | ||||||||||||||||||||||||||||||||||||||||
160.9 | 120.8 | Institutional customers | 169.1 | 179.1 | 190.1 | 197.8 | 203.0 | 211.1 | 221.0 | |||||||||||||||||||||||||||||||
35.2 | 30.8 | Retail customers | 36.5 | 38.2 | 53.1 | 46.2 | 39.8 | 49.5 | 46.2 | |||||||||||||||||||||||||||||||
248.8 | 224.9 | General account | 289.1 | 294.8 | 314.5 | 316.7 | 310.7 | 321.4 | 330.3 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||
444.9 | 376.5 | 494.7 | 512.1 | 557.7 | 560.7 | 553.5 | 582.0 | 597.5 | ||||||||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||
23.6 | 20.2 | Institutional customers | 25.1 | 26.6 | 27.0 | 27.7 | 29.8 | 30.1 | 30.6 | |||||||||||||||||||||||||||||||
1.5 | 1.6 | Retail customers | 1.6 | 1.6 | 1.4 | 1.4 | 1.4 | 1.3 | 1.4 | |||||||||||||||||||||||||||||||
0.9 | 0.9 | General account | 1.0 | 1.3 | 1.3 | 1.3 | 1.4 | 1.5 | 1.4 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||
26.0 | 22.7 | 27.7 | 29.5 | 29.7 | 30.4 | 32.6 | 32.9 | 33.4 | ||||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||||||
237.8 | 190.8 | Institutional customers | 248.9 | 258.9 | 261.2 | 271.8 | 286.1 | 289.2 | 303.1 | |||||||||||||||||||||||||||||||
110.6 | 91.7 | Retail customers | 118.7 | 119.8 | 119.4 | 119.3 | 125.1 | 131.7 | 133.9 | |||||||||||||||||||||||||||||||
257.4 | 232.4 | General account | 298.2 | 305.2 | 324.2 | 326.7 | 321.3 | 331.4 | 340.7 | |||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||
605.8 | 514.9 | 665.8 | 683.9 | 704.8 | 717.8 | 732.5 | 752.3 | 777.7 | ||||||||||||||||||||||||||||||||
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Page 45
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RECLASSIFIED SUPPLEMENTARY U.S. RETIREMENT SOLUTIONS AND INVESTMENT MANAGEMENT DIVISION - SUPPLEMENTARY ASSETS UNDER MANAGEMENT AND ADMINISTRATION INFORMATION FOR ASSET MANAGEMENT SEGMENT
(in billions)
Year-to-date | 2011 | 2012 | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||||||||||||||||||||||||||
Institutional Assets Under Management: | ||||||||||||||||||||||||||||||||||||
Assets gathered by Investment Management & Advisory Services sales force: | ||||||||||||||||||||||||||||||||||||
154.5 | 130.2 | Beginning assets under management | 200.1 | 211.9 | 221.6 | 224.0 | 234.2 | 247.5 | 251.4 | |||||||||||||||||||||||||||
53.2 | 34.8 | Additions | 13.0 | 11.1 | 11.0 | 14.3 | 14.1 | 11.2 | 12.7 | |||||||||||||||||||||||||||
(24.5 | ) | (21.6 | ) | Withdrawals | (6.9 | ) | (6.2 | ) | (8.7 | ) | (10.7 | ) | (8.7 | ) | (11.2 | ) | (9.3 | ) | ||||||||||||||||||
17.0 | 12.5 | Change in market value | 5.4 | 4.7 | 0.4 | 6.3 | 7.7 | 3.7 | 8.9 | |||||||||||||||||||||||||||
(0.8 | ) | (1.5 | ) | Net money market flows | (0.1 | ) | — | (0.2 | ) | 0.3 | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||||
0.7 | 0.1 | Other (1) | 0.4 | 0.1 | (0.1 | ) | — | 0.1 | 0.1 | — | ||||||||||||||||||||||||||
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200.1 | 154.5 | Ending assets under management | 211.9 | 221.6 | 224.0 | 234.2 | 247.5 | 251.4 | 263.8 | |||||||||||||||||||||||||||
37.7 | 36.3 | Affiliated institutional assets under management | 37.0 | 37.3 | 37.2 | 37.6 | 38.6 | 37.8 | 39.3 | |||||||||||||||||||||||||||
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237.8 | 190.8 | Total assets managed for institutional customers at end of period | 248.9 | 258.9 | 261.2 | 271.8 | 286.1 | 289.2 | 303.1 | |||||||||||||||||||||||||||
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28.7 | 13.2 | Net institutional additions, excluding money market activity | 6.1 | 4.9 | 2.3 | 3.6 | 5.4 | — | 3.4 | |||||||||||||||||||||||||||
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Retail Assets Under Management: | ||||||||||||||||||||||||||||||||||||
Assets gathered by Investment Management & Advisory Services sales force: | ||||||||||||||||||||||||||||||||||||
61.4 | 41.0 | Beginning assets under management | 75.1 | 80.7 | 82.1 | 72.2 | 69.6 | 81.1 | 81.1 | |||||||||||||||||||||||||||
27.2 | 21.7 | Additions | 8.1 | 6.1 | 7.5 | 8.2 | 9.4 | 9.5 | 8.0 | |||||||||||||||||||||||||||
(19.4 | ) | (14.8 | ) | Withdrawals | (5.3 | ) | (6.1 | ) | (6.8 | ) | (6.0 | ) | (6.1 | ) | (5.9 | ) | (5.5 | ) | ||||||||||||||||||
8.2 | 13.5 | Change in market value | 3.0 | 1.2 | (9.1 | ) | 5.2 | 8.2 | (3.6 | ) | 4.3 | |||||||||||||||||||||||||
(2.8 | ) | (0.2 | ) | Net money market flows | (0.1 | ) | — | — | (1.0 | ) | — | — | (0.1 | ) | ||||||||||||||||||||||
0.5 | 0.2 | Other (2) | (0.1 | ) | 0.2 | (1.5 | ) | (9.0 | ) | — | — | — | ||||||||||||||||||||||||
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75.1 | 61.4 | Ending assets under management | 80.7 | 82.1 | 72.2 | 69.6 | 81.1 | 81.1 | 87.8 | |||||||||||||||||||||||||||
35.5 | 30.3 | Affiliated retail assets under management | 38.0 | 37.7 | 47.2 | 49.7 | 44.0 | 50.6 | 46.1 | |||||||||||||||||||||||||||
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110.6 | 91.7 | Total assets managed for retail customers at end of period | 118.7 | 119.8 | 119.4 | 119.3 | 125.1 | 131.7 | 133.9 | |||||||||||||||||||||||||||
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7.8 | 6.9 | Net retail additions, excluding money market activity | 2.8 | — | 0.7 | 2.2 | 3.3 | 3.6 | 2.5 | |||||||||||||||||||||||||||
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(1) | “Other” activity represents transfers from the Retirement Segment, as a result of changes in the client contract form; and FX related to International assets under management. |
(2) | “Other” activity represents the sale of our investment in the Afore XXI operating joint venture in fourth quarter 2011, the effect of foreign exchange rate changes, and a reclassification in first quarter 2011 of certain fund balances to affiliated retail assets under management. |
Page 46
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
KEY DEFINITIONS AND FORMULAS
1. Adjusted operating income before income taxes:
Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses that excludes “Realized investment gains (losses), net”, as adjusted, and related charges and adjustments; net investment gains and losses on trading account assets supporting insurance liabilities; change in experience-rated contractholder liabilities due to asset value changes; results of divested businesses and discontinued operations; earnings attributable to noncontrolling interests; and the related tax effects thereof. Adjusted operating income includes equity in earnings of operating joint ventures and the related tax effects thereof. Revenues and benefits and expenses shown as components of adjusted operating income, are presented on the same basis as pre-tax adjusted operating income and are adjusted for the items above as well.
Realized investment gains (losses) within certain of our businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of a hedging program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets.
Adjusted operating income does not equate to “Income from continuing operations” as determined in accordance with GAAP but is the measure of profit or loss we use to evaluate segment performance. Adjusted operating income is not a substitute for income determined in accordance with GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability factors of our businesses.
2. After-tax adjusted operating income:
Adjusted operating income before taxes, as defined above, less the income tax effect applicable to adjusted operating income before taxes.
3. Annualized New Business Premiums:
Premiums from new sales that are expected to be collected over a one year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Group disability amounts include dental products. Excess (unscheduled) and single premium business for the company’s domestic individual life and international insurance operations are included in annualized new business premiums based on a 10% credit.
4. Assets Under Management:
Fair market value or account value of assets which Prudential manages directly in proprietary products, such as mutual funds and variable annuities, in separate accounts, wrap-fee products and the general account, and assets invested in investment options included in the Company’s products that are managed by third party sub-managers (i.e., the non-proprietary investment options in the Company’s products).
5. Attributed Equity:
Amount of capital assigned to each of the Company’s segments for purposes of measuring segment adjusted operating income before income taxes, established at a level which management considers necessary to support the segment’s risks. Attributed equity for the Financial Services Businesses represents all of the Company’s equity that is not included in the Closed Block Business or attributable to noncontrolling interests.
6. Book value per share of Common Stock:
Equity attributed to Financial Services Businesses divided by the number of Common shares outstanding at end of period, on a diluted basis.
7. Borrowings - Capital Debt:
Borrowings that are or will be used for capital requirements at Prudential Financial, Inc as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial, Inc., and subsidiary borrowings, utilized for capital requirements.
8. Borrowings - Operating Debt - Investment Related:
Debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios as well as institutional and insurance company portfolio cash flow timing differences.
9. Borrowings - Operating Debt - Specified Businesses:
Borrowings primarily associated with the individual annuity and asset management businesses.
Page 47
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
KEY DEFINITIONS AND FORMULAS
10. Client Assets:
Fair market value of assets in client accounts of International brokerage operations, Prudential Bank and mortgage loan servicing business, that are not included in Assets Under Management. Prudential does not receive a management or administrative fee on these assets, but may receive a fee for executing trades, custody or recordkeeping services.
11. Earned Premiums:
The portion of a premium, net of any amount ceded, that represents coverage already provided or that belongs to the insurer based on the part of the policy period that has passed.
12. Earnings Per Share of Common Stock:
Net income (loss) for the Financial Services Businesses and the Closed Block Business is determined in accordance with GAAP and includes general and administrative expenses charged to each of the businesses based on the Company’s methodology for the allocation of such expenses. Cash flows between the Financial Services Businesses and the Closed Block Business related to administrative expenses are determined by a policy servicing fee arrangement that is based upon insurance and policies in force and statutory cash premiums. To the extent reported administrative expenses vary from these cash flow amounts, the differences are recorded, on an after-tax basis, as direct equity adjustments to the equity balances of each business. The direct equity adjustments modify earnings available to holders of Common Stock and Class B Stock for earnings per share purposes. Earnings per share of Common Stock based on adjusted operating income (loss) of the Financial Services Businesses reflects these adjustments as well.
13. Full Service:
The Full Service line of business provides retirement plan products and services to public, private and not-for-profit organizations. This business provides recordkeeping, plan administration, actuarial advisory services, participant education and communication services, trustee services and institutional and retail investment funds. This business mainly services defined contribution and defined benefit plans; non-qualified plans are also serviced. For clients with both defined contribution and defined benefit plans, integrated recordkeeping services are available. For participants leaving these plans, a range of rollover products are provided through a broker-dealer bank.
14. Full Service Stable Value:
Our Full Service Stable Value products represent fixed rate options on investment funds offered to customers. These products contain an obligation to pay interest at a specified rate for a specific period of time. Upon termination these products repay account balances at market value immediately or may be liquidated at book value over time. Substantially all of these products are either fully or partially participating, with annual or semi-annual resets giving effect to previous investment experience. These products are issued through the general account, separate accounts or client-owned trusts. Profits from partially participating general account products result from the spread between the rate of return on investment assets and the interest rates credited to the customer, less expenses. For fully participating products, generally subject to a minimum interest rate guarantee, we earn fee income.
15. General Account:
Invested assets and policyholder liabilities and reserves for which the Company bears the investment risk. Excludes assets recognized for statutory purposes that are specifically allocated to a separate account. General account assets also include assets of the parent company, Prudential Financial, Inc.
16. Gibraltar Life Consultants:
Insurance representatives for Gibraltar Life, previously identified as Life Advisors.
17. Group Life Insurance and Group Disability Insurance Administrative Operating Expense Ratios:
Ratio of administrative operating expenses (excluding commissions) to gross premiums, policy charges and fee income.
18. Group Life Insurance and Group Disability Insurance Benefits Ratios:
Ratio of policyholder benefits to earned premiums, policy charges and fee income.
19. Individual Annuity Account Values in General Account and Separate Account:
Amounts represent the breakdown of invested customer funds in annuities either written or reinsured by the Company.
20. Individual Annuities - Net Amounts at Risk:
Living Benefit Features - For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance.
Death Benefit Features - Net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date.
Page 48
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
KEY DEFINITIONS AND FORMULAS
21. Insurance and Annuity Benefits:
Total death benefits, annuity benefits, disability benefits, other policy benefits, and losses paid or incurred, under insurance and annuity contracts, plus the change in reserves for future policy benefits, losses and loss adjustment expenses.
22. International Life Planners:
Insurance agents in our insurance operations outside the United States, excluding Gibraltar Life Advisors.
23. Non-recourse and Limited-recourse Debt:
Limited and non-recourse borrowing is where the holder is entitled to collect only against the assets pledged to the debt as collateral or has only very limited rights to collect against other assets.
24. Operating return on average equity (based on adjusted operating income):
Adjusted operating income after-tax (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average attributed equity for the Financial Services Businesses excluding accumulated other comprehensive income.
An alternative measure to operating return on average equity (based on adjusted operating income) is return on average equity (based on income from continuing operations). Return on average equity (based on income from continuing operations) represents income from continuing operations after-tax, for the Financial Services Businesses, attributable to Prudential Financial, Inc. as determined in accordance with GAAP (giving effect to the direct equity adjustment for earnings per share calculation), annualized for interim periods, divided by average total attributed equity for the Financial Services Businesses. Return on average equity (based on income from continuing operations) is 1.22% for the twelve months ended December 31, 2012, 11.1% for the twelve months ended December 31, 2011, (2.3)% for the three months ended December 31, 2012, (6.7)% for the three months ended September 30, 2012, 25.4% for the three months ended June 30, 2012, (11.6)% for the three months ended March 31, 2012, and 6.2% for the three months ended December 31, 2011.
25. Policy Persistency - Group Insurance:
Percentage of the premiums in force at the end of the prior year that are still in force at the end of the period (excluding Servicemembers’ Group Life Insurance and Prudential Employee Benefit Plan).
26. Policy Persistency - International Insurance:
13 month persistency represents the percentage of policies issued that are still in force at the beginning of their second policy year. 25 month persistency represents the percentage of policies issued that are still in force at the beginning of their third policy year.
27. Prudential Agents:
Insurance agents in our insurance operations in the United States.
28. Prudential Agent productivity:
Commissions on new sales of all products by Prudential Agents under contract for the entire period, divided by the number of those Prudential Agents. Excludes commissions on new sales by Prudential Agents hired or departed during the period. For interim reporting periods, the productivity measures are annualized.
29. Separate Accounts:
Assets of our insurance companies allocated under certain policies and contracts that are segregated from the general account and other separate accounts. The policyholder or contractholder predominantly bears the risk of investments held in a separate account.
30. Wrap-Fee Products:
Investment products generating asset-based fees in which the funds of the customer are generally invested in other investment products such as mutual funds.
Page 49
Prudential Financial, Inc. Quarterly Financial Supplement Fourth Quarter 2012 | ![]() |
RATINGS AND INVESTOR INFORMATION
FINANCIAL STRENGTH RATINGS
as of February 6, 2013
A.M. Best | Standard & Poor’s | Moody’s | Fitch Ratings | |||||
The Prudential Insurance Company of America | A+ | AA- | A2 | A+ | ||||
PRUCO Life Insurance Company | A+ | AA- | A2 | A+ | ||||
PRUCO Life Insurance Company of New Jersey | A+ | AA- | NR * | A+ | ||||
Prudential Annuities Life Assurance Corporation | A+ | AA- | NR | A+ | ||||
Prudential Retirement Insurance and Annuity Company | A+ | AA- | A2 | A+ | ||||
The Prudential Life Insurance Co., Ltd. (Prudential of Japan) | NR | AA- | NR | NR | ||||
Gibraltar Life Insurance Company, Ltd. | NR | AA- | NR | NR | ||||
CREDIT RATINGS: | ||||||||
as of February 6, 2013 | ||||||||
Prudential Financial, Inc.: | ||||||||
Short-Term Borrowings | AMB-1 | A-1 | P-2 | F2 | ||||
Long-Term Senior Debt (1) | a- | A | Baa2 | BBB+ | ||||
Junior Subordinated Long-Term Debt | bbb | BBB+ | Baa3 | BBB- | ||||
The Prudential Insurance Company of America: | ||||||||
Capital and surplus notes | a | A | Baa1 | A- | ||||
Prudential Funding, LLC: | ||||||||
Short-Term Debt | AMB-1 | A-1+ | P-2 | F1 | ||||
Long-Term Senior Debt | a+ | AA- | A3 | A | ||||
PRICOA Global Funding I | ||||||||
Long-Term Senior Debt | aa- | AA- | A2 | A+ |
* | NR indicates not rated. |
(1) | Includes the retail medium-term notes program. |
INVESTOR INFORMATION:
Corporate Offices: | Investor Information Hotline: | |
Prudential Financial, Inc. | Dial 877-998-ROCK for additional printed information or inquiries. | |
751 Broad Street | ||
Newark, New Jersey 07102 | Web Site: | |
www.prudential.com |
Common Stock:
Common Stock of Prudential Financial, Inc. is traded on the New York Stock Exchange under the symbol PRU.
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