Prudential Financial reported second-quarter 2025 results showing lower net income compared to the same period last year, while adjusted operating income increased slightly.
Net income attributable to the company was $533 million, down from $1.198 billion in the second quarter of 2024. Adjusted operating income after tax was $1.284 billion, compared to $1.197 billion for the same quarter last year.
The decline in net income included $516 million in pre-tax net realized investment losses and related adjustments. These comprised $78 million in net credit-related losses, $426 million in losses tied to changes in the value of market risk benefits, $6 million from divested and run-off businesses, and $42 million in gains linked to market experience updates.
A year earlier, net income included $175 million in pre-tax investment gains, which were partly offset by $74 million in credit-related losses and $297 million in market risk benefit losses.
Prudential’s first-quarter 2025 results provide context for its second-quarter performance trends. Adjusted operating income for Q1 totaled $1.19 billion, up from $1.12 billion in the prior year. Net income for the quarter was $707 million, down from $1.138 billion a year earlier.
Prudential’s US businesses segment posted adjusted operating income of $955 million for the quarter, compared to $1.023 billion in Q2 2024. The decrease included a $111 million unfavorable impact from an annual assumption update and other refinements.
Retirement strategies, which includes both institutional and individual products, reported adjusted operating income of $722 million, down from $989 million in the prior-year period. International businesses posted $761 million in adjusted operating income, up from $702 million last year, with favorable assumption updates contributing $53 million to results.
Sales on a constant dollar basis reached $541 million, a 4% increase from the previous year, primarily driven by higher retirement and savings product sales in Japan.
PGIM, Prudential’s global investment management arm, reported $229 million in adjusted operating income, compared to $206 million last year. PGIM’s assets under management grew 8% year over year to $1.441 trillion, supported by market appreciation in fixed income and equities, net inflows, and positive investment performance.
Chief executive officer Andy Sullivan (pictured above) said the quarter’s results showed continued momentum across retirement, insurance, and investment businesses.
“Looking ahead, we are focused on driving growth and long-term value for our shareholders, while continuing to navigate the current macroeconomic environment with discipline and the support of our robust financial strength,” Sullivan said.
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