Prudential Financial . 5.7 % Subordinated Notes 2013-15.3.53 Jr Subord Stock Earnings Reports

Prudential reported solid first-quarter results with after-tax adjusted operating income of ~$1.3 billion (up 10% YoY) and adjusted operating ROE around 15%. Key drivers: stronger spread income in U.S. and International insurance, improved life underwriting, and PGIM momentum. PGIM delivered $190 million pretax AOI (up 22%), AUM $1.4 trillion, improving margins (19.1%) and continued expansion of private assets and direct lending. Retirement showed continued sales strength (total sales $7.4B; retail annuities $3.3B) and institutional PRT activity ($1.4B). Individual Life performance improved materially; the company resegmented Guaranteed Universal Life and created a U.S. Legacy Products segment to increase transparency. Group Insurance experienced underwriting pressure in disability (benefits ratio rose to 83.7%) but life results were favorable. International was impacted by the voluntary sales suspension in Prudential of Japan (POJ): Q1 financial impact ~$130M and the company expects aggregate 2026 pretax AOI impact of ~$525–575M, with a gradual sales ramp assumed (no sales through Nov 5 and ~50% average Life Planner productivity in 2027). Capital and liquidity remain strong (cash/liquids $3.7B; estimated ESR 170%–190%), and management does not expect the POJ suspension to materially affect cash flows or capital deployment for 2026–2027. They lowered full-year 2026 tax-rate guidance to 21%–22%. Management emphasized continued simplification, disciplined capital allocation, cost optimization with expected expense benefits by 2027, and will provide a more detailed long-term strategy update on the August call.