How Does Prudential Financial Company Work?

PGIM, Prudential Financial's global investment management division, managed $1.441 trillion in assets as of the second quarter of 2025, marking an 8% year-over-year increase. The division reported an adjusted operating income of $229 million in the same period, with a strategic emphasis on stable, fee-based revenue streams, particularly within the growing private credit market.

The U.S. Businesses segment generated an adjusted operating income of $955 million in Q2 2025. Retirement Strategies experienced significant growth, with institutional sales reaching $7 billion in Q1 2025, including $5 billion from longevity risk transfers, while individual sales grew by 5% to $3.5 billion.

Group Insurance saw its income boosted by 98% to $89 million in Q1 2025 due to underwriting improvements, alongside a 6% rise in sales. The Individual Life segment reduced its loss to $34 million in the first quarter of 2025, indicating operational improvements.

Despite a decrease in adjusted operating income to $848 million in Q1 2025, influenced by foreign exchange rates and lower investment spreads, Prudential's International Businesses demonstrated robust sales growth of 15% on a constant dollar basis in key markets such as Japan and Brazil.

Andrew Sullivan assumed the role of CEO on March 31, 2025, marking a key leadership transition. A significant strategic move to bolster its international presence was the January 2025 partnership with Dai-ichi Life in Japan, aimed at enhancing product distribution and asset management capabilities.

In June 2025, the company unified PGIM's fixed income and private credit units into a global credit platform managing over $1 trillion in assets. Prudential also continued its capital return strategy, completing $1.045 billion in share buybacks in 2024 and authorizing up to $1 billion for 2025, alongside a 4% dividend increase in Q1 2025.

Prudential Financial's competitive edge is built on strong brand recognition, a diverse business mix, and a robust balance sheet, supported by operations across the U.S., Asia, Europe, and Latin America. The company has also focused on a more capital-efficient model, reducing exposure to certain products and investing in digital transformation.

The company demonstrates a commitment to innovation through initiatives like the launch of its ActiveIncome product and engagement with fintech research via a partnership with Stevens Institute of Technology. These efforts align with Prudential Financial's strategy to adapt to evolving market demands and enhance its retirement planning solutions.

Prudential Financial is a global leader in financial services, managing substantial assets and earning accolades for its industry standing. Its diversified business model, which includes investment management through PGIM, U.S. operations, and international segments, fosters broad market reach and customer loyalty.

The company navigates several risks, including intense competition, market volatility impacting its investment portfolio, and interest rate fluctuations. Exposure to commercial real estate risk, potential stagflation, and the need for continuous adaptation to technological disruption from fintech firms are also significant challenges.

Prudential Financial is focused on driving sustainable growth and enhancing shareholder value. The company projects over 10% growth in new business profit and basic earnings per share for 2025, alongside a minimum 10% increase in its dividend per share.

Strategic initiatives include operational excellence and expanding sales of capital-efficient products. Prudential aims for annual core earnings-per-share growth of 5% to 8% and an adjusted return on equity of 13% to 15%.