Prudential Financial, Inc. has announced the completion of a reinsurance transaction involving a segment of its guaranteed universal life insurance block with Wilton Re. This move aligns with Prudential’s strategic focus on pursuing high-growth and capital-efficient operations. The financial implications of the deal remain in line with the company’s previous disclosures made on August 20, 2024.
In addition to this transaction, Prudential has also restructured several internal captive reinsurance arrangements related to its in-force term life insurance block. This restructuring will incur one-time pre-tax expenses of approximately $40 million in the fourth quarter of 2024, primarily stemming from the termination of specific financing facilities.
Meanwhile, Prudential shared its financial results for the third quarter of 2024, highlighting a notable turnaround in profitability. The company reported a net income of $448 million, or $1.24 per common share, a significant improvement compared to a net loss of $802 million, or $2.23 per share, in the same quarter of the previous year. After-tax adjusted operating income for the quarter totaled $1.26 billion, or $3.48 per share, slightly lower than the $1.33 billion, or $3.62 per share, reported for the same period in 2023.
Prudential’s book value per common share rose to $84.47, up from $70.82 in the third quarter of 2023, while its adjusted book value per common share increased to $98.71 from $94.19. The parent company retained highly liquid assets of $4.3 billion, consistent with the prior year’s third quarter. Total assets under management grew to $1.558 trillion, reflecting an increase from $1.361 trillion a year earlier.
During the quarter, Prudential returned $721 million in capital to shareholders. This included $250 million allocated for share repurchases and $471 million in dividend payments. The company’s dividends amounted to $1.30 per common share, representing a 5% yield based on adjusted book value.
