PRUDENTIAL FINANCIAL INC
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Corporate and Other
In March 2024, the Company committed to a plan to exit the operations of AIQ; therefore, beginning with the first quarter of 2024, AIQ is classified as a divested business within our Corporate and Other operations. AIQ’s results are excluded from adjusted operating income and historical results have been updated to conform to current period presentation.
In September 2023, the Company acquired a 20% interest as a limited partner in Prismic, a Bermuda-exempted limited partnership that owns all the outstanding capital stock of Prismic Re. Beginning with the fourth quarter of 2023, the operating results of Corporate and Other reflect the Company’s share of earnings in Prismic on a quarter lag.
Corporate and Other includes corporate operations, after allocations to our business segments, and Divested and Run-off Businesses other than those that qualify for “discontinued operations” accounting treatment under U.S. GAAP. The following table sets forth Corporate and Other’s operating results for the periods indicated:
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (in millions) | ||||
| Operating results: | ||||
| Investment income | $38 | $31 | $93 | $92 |
| Interest expense on debt | (213) | (215) | (418) | (427) |
| Pension and employee benefits | 97 | 86 | 191 | 177 |
| Other corporate activities(1) | (293) | (374) | (672) | (785) |
| Adjusted operating income(1) | (371) | (472) | (806) | (943) |
| Realized investment gains (losses), net, and related charges and adjustments | 64 | (129) | 141 | (180) |
| Market experience updates | 3 | 0 | 3 | (3) |
| Divested and Run-off Businesses(1) | 38 | (1) | 3 | 91 |
| Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests | (37) | 29 | (40) | 26 |
| Other adjustments | 0 | 1 | 0 | 1 |
| Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities | $(303) | $(572) | $(699) | $(1,008) |
(1)Effective first quarter of 2024, the results of AIQ are excluded from Corporate and Other’s adjusted operating results and are included in Divested and Run-off Businesses. Prior period amounts have been updated to conform to current period presentation.
Three Month Comparison. The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $101 million primarily driven by lower net charges from other corporate activities of $81 million, reflecting a decrease in legal reserves and lower costs related to other corporate initiatives. Pension and employee benefits results were favorable by $11 million primarily reflecting a change in the postretirement retiree medical plan.
Six Month Comparison. The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $137 million, primarily driven by lower net charges from other corporate activities of $113 million, reflecting a decrease in legal reserves, lower costs related to other corporate initiatives, and lower expenses, partially offset by unfavorable foreign exchange rate impacts and higher costs for long-term compensation plans. Pension and employee benefits results were favorable by $14 million primarily reflecting a change in the postretirement retiree medical plan.
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