Trading account assets supporting insurance liabilities



See footnotes on last page. Consolidated Statements of Liabiliteis. International Insurance divisions, as well as Corporate and Other. Document and Entity Information. Earnings Per Share Narrative Details.




PRU today reported year-end and fourth quarter results. Net income attributable to Prudential Financial, Inc. Information regarding adjusted operating income, a non-GAAP measure, is provided below. For the fourth quarter ofnet income attributable to Prudential Financial, Inc. Adjusted operating income does not equate to net income as determined in accordance with GAAP, but is the measure used by the Company to evaluate segment performance and to allocate resources, and is the measure of segment performance presented below.

Consolidated adjusted operating income is trading account assets supporting insurance liabilities non-GAAP measure of financial performance. Adjusted book value is a non-GAAP measure of financial position. Retirement Solutions and Investment Management, U. Individual Life and Group Insurance, and International Insurance divisions, as well as Corporate and Other Operations. In the following business-level discussion, adjusted operating income refers to pre-tax results.

The greater contribution from policy fees reflected efficiencies from recently implemented refinements in risk management strategies relative to contract guarantees. Higher expenses in the current quarter partly offset the greater net contributions from investment results and policy fees. This increase reflected greater contributions from net investment results and case experience, as well as lower expenses.

Ibsurance increase was driven by higher asset management fees reflecting growth in fixed income assets under management and fee rate modifications within certain real estate funds. The increase reflected lower expenses and a greater contribution from net investment results, partly offset by less favorable underwriting results.

The trxding quarter contribution from net investment results included returns on non-coupon investments and prepayment fees slightly above our average expectations. This increase was driven by continued business growth, more favorable policy benefits experience, and lower expenses. The current quarter contribution from net investment results was essentially unchanged from the year-ago quarter and included returns on non-coupon investments and prepayment fees slightly above our average expectations.

The decrease in the gross GAAP liability was primarily due to rising interest rates. These changes primarily represent mark-to-market adjustments. Private Securities Litigation Reform Act of There can be no assurance that future developments affecting Prudential Financial, Inc. Consolidated adjusted supportiing income and adjusted book value are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in this release.

Xupporting significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The wssets of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as our tax and capital profile.

Realized investment gains losses within certain of our businesses for which such gains losses are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products.

However, the effectiveness of our hedging program will ultimately be reflected in adjusted operating income over time. Adjusted operating income also excludes gains and losses from changes in value of rrading assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are classified as other trading account assets.

Adjusted operating income also excludes investment gains and losses on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. In addition, adjusted operating income excludes the results of divested businesses, which are not relevant to our ongoing operations.

Discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP, are also excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.

Adjusted book value is calculated as total equity GAAP book value excluding both accumulated other comprehensive income loss and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to insurahce investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.

The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of supportiing businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market supoprting and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP.

However, adjusted operating income and adjusted book value are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of assetz overall results of operations and financial position. The schedules accompanying this release provide a reconciliation of adjusted operating income to income from continuing operations in accordance with GAAP and a reconciliation of adjusted book value to GAAP book value.

The tradnig referred to above, as well as the risks of our businesses described in our Annual Report on Form K for the year ended December 31, and subsequent Quarterly Reports on Form Q, should be considered by readers when reviewing forward-looking statements contained in this release. Additional historic information relating to our financial performance is located on our Web site at www. Please log on 15 minutes early in the event necessary software needs ,iabilities be downloaded.

The call will remain on the Investor Relations Web site for replay through February All others are encouraged to dial into the conference call in listen-only mode, using the same numbers. To listen to a replay of the conference call starting at 2 p. The access code for the replay is For more information, please visit www. All of a sudden we have all these problems This is what happens when you elected someone with no experience and a con artist besides.

Markets close in 3 hrs 2 mins Prudential Financial, Inc. Retirement Solutions and Investment Management Division 1, Individual Life and Group Insurance Division Adjusted operating income, when presented at the segment level, is also a segment performance measure. This segment performance measure, while not a traditional U. GAAP measure, is required to be disclosed by U. GAAP in accordance with FASB Accounting Standard Codification ASC — Segment Reporting.

When presented by segment, we have prepared the reconciliation of adjusted operating income to the corresponding consolidated U. GAAP total in accordance with the disclosure requirements as articulated in ASC Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers' Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts.

Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Constant amounts reflect foreign denominated activity translated to U. Reblog Share Tweet Share Recently Viewed Your list is empty. It's offensive Something else Thank you for helping us improve your Yahoo experience It's not relevant It's distracting I don't like this ad Send Done Why do I see ads?

Learn more about your feedback. Less: Income from discontinued operations, net of taxes Income from continuing operations after-tax Less: Earnings attributable to eupporting interests Income from continuing operations attributable to Prudential Financial, Inc. Less: Equity in earnings trxding operating joint ventures, net of taxes and earnings attributable to noncontrolling interests Income from continuing operations after-tax before equity in earnings of operating joint ventures Realized investment gains losses trading account assets supporting insurance liabilities, net, and related charges and adjustments Investment losses on trading account assets supporting insurance liabilities, net Change in experience-rated contractholder liabilities due to asset value changes Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Less: Income taxes, not applicable to adjusted operating income Income taxes, applicable to adjusted operating income Adjusted operating income before income taxes 1 Net income attributable to Prudential Financial, Inc.

Less: Income from discontinued operations, net of taxes Income from continuing operations after-tax attributable to Prudential Financial, Inc. Realized investment gains lossesnet, and related charges and adjustments Investment gains losses on trading account assets supporting insurance liabilities, net Change in experience-rated contractholder liabilities due to asset value changes Difference in earnings allocated to participating unvested share-based payment awards Less: Income taxes, not applicable to adjusted operating income Weighted average number of outstanding Common shares basic Weighted average number of outstanding Common shares diluted Earnings related to interest, trading account assets supporting insurance liabilities of tax, on exchangeable surplus notes Earnings allocated to participating unvested share-based payment awards Prudential Financial, Inc.

Retirement Solutions and Investment Management Division Total U. Individual Life and Group Insurance Division Realized investment gains lossesnet, and related charges and adjustments Investment losses on trading account assets supporting insurance liabilities, net Change in experience-rated contractholder liabilities due to asset value changes Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Income from continuing operations before income taxes and equity in earnings of operating joint ventures for Prudential Financial, Inc.

Retirement Solutions and Investment Management Division: Assets managed by Investment Management and Advisory Services in billions, Total Investment Management and Advisory Services Institutional Customers - Assets Under Management in billions : Retail Suppotring - Assets Under Management in billions : Net additions withdrawalsother than money market U.

Insurande Trading account assets supporting insurance liabilities and Group Insurance Division: Individual Life Insurance Annualized New Business Premiums 3 : International Insurance Annualized New Business Premiums 3 4 : Managed by U. Retirement Solutions and Investment Management Division: Total managed by U. Retirement Solutions and Investment Management Division Managed by U. Individual Life and Group Insurance Division Insuramce operating income is a non-GAAP measure of performance.

Premiums from new sales that are expected to be collected over a one year accounf. Actual amounts reflect the impact of currency fluctuations.




Property Plant And Equipment Nonmonetary Exchange (Gain On Trade In Of Equipment)


losses on trading account assets supporting insurance Prudential Financial, Inc. Equity account assets supporting insurance liabilities ;. Portfolio Report March Unless Trading Account Assets Supporting Insurance Liabilities 14 Other Trading Account Assets 17. balance sheet as “ Trading account assets supporting insurance liabilities, at fair value.” Total trading account assets supporting insurance liabilities.

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