Prudential Financial details 2023 earnings

Prudential Financial is back in the black.

After suffering a net loss of $1.647 billion in 2022, Prudential Financial bounced back in 2023 with net income attributable to the company amounting to $2.488 billion. In the fourth quarter, the turnaround came in the form of $1.317 billion in attributable net income – a leap from a net loss of $52 million.

In terms of after-tax adjusted operating income, the financial services group saw increases in both periods. The sum for Q4 stood at $943 million; for the full year, $4.286 billion.

“Our 2023 results reflect continued strong sales across our insurance and retirement businesses and solid underlying earnings growth,” Prudential Financial chair and chief executive Charles Lowrey said in a release. “We are proud of the significant progress we made to become a higher-growth, more capital-efficient, and more nimble company.

“In 2023, we successfully reduced our market sensitivity and increased capital flexibility through multiple strategic transactions. We reached more people around the world with our leading life, retirement, and investment products through expanded distribution and enhanced technology.

“We launched Prismic, a life and annuity reinsurance company, to drive future growth and unlock value for all stakeholders. And, finally, we adopted a new operating model to ensure we meet our customers’ evolving needs while driving efficiency to maintain our competitive market position.

“Looking ahead, we are confident that our strategy and mutually reinforcing business system position us well to deliver long-term, sustainable growth, and to continue to be a global leader in expanding access to investing, insurance, and retirement security.”

CFO succession

Aside from unveiling its financial results, Prudential Financial also announced the appointment of Yanela Frias as executive vice president and chief financial officer. Currently group insurance president, Frias will take over from outgoing CFO Ken Tanji on March 15.

  “Yanela’s extensive finance, operations, and leadership experience will serve us well as we execute on our strategy,” Lowrey said.

Frias has been with Prudential Financial for nearly three decades. Her predecessor, meanwhile, will stay until September 30 as part of the transition.

“Ken has played an important role in Prudential’s success, holding a variety of finance leadership positions over his tenure with the company and, most recently, in directing the company’s financial strategy,” Lowrey highlighted without disclosing the reason for Tanji’s departure.

“Ken made meaningful contributions as our CFO, including leading de-risking and capital release transactions, delivering on expense objectives, and successfully steering the company through the financial challenges of the pandemic and ensuing market volatility.

“On behalf of the board of directors and management team, I want to thank him for his 35 years of distinguished service and his many contributions and commitment to Prudential.”

What do you think about this story? Share your thoughts in the comments below.