Key Highlights

  • Net income was USD 1.388 billion, or USD 3.96 per share, against USD 1.431 billion, or USD 4.01.
  • Adjusted Operating Income was USD 1.321 billion, or USD 3.77 per share, down from USD 1.444 billion, or USD 4.05.
  • Japan Businesses adjusted operating income fell to USD 559 million from USD 750 million on the sales suspension.
  • Capital returned totalled USD 741 million, including USD 250 million of share repurchases and USD 491 million of dividends.

Japan Earnings Decline

Prudential Financial, Inc. (NYSE:PRU), the Newark, New Jersey insurer and asset manager, reported third-quarter 2026 Net Income attributable to the company of USD 1.388 billion, or USD 3.96 per common share, versus USD 1.431 billion, or USD 4.01, a year earlier. After-tax adjusted operating income was USD 1.321 billion, or USD 3.77 per share, compared with USD 1.444 billion, or USD 4.05.

Chairman and Chief Executive Officer Andy Sullivan said lower earnings in Japan related to the sales suspension at Prudential of Japan more than offset results in PGIM and the U.S. businesses. The company attributes the decline to the sales suspension, including higher expenses and less favorable Underwriting results, and to lower net Investment spread results. Constant dollar sales of USD 291 million fell 36%.

Analyst estimates were EPS of USD 3.34 against reported EPS of USD 3.77, and Revenue of USD 14.66 billion against reported revenue of USD 14.37 billion.

PGIM and the U.S. Businesses

PGIM reported adjusted operating income of USD 263 million, up from USD 244 million, helped by the absence of a reorganization charge in the prior year and higher asset management fees. Assets under management were USD 1.465 trillion, essentially unchanged, and total net inflows were USD 7.4 billion, made up of third-party net inflows of USD 9.0 billion and affiliated net outflows of USD 1.6 billion. Sullivan said third-party flows were the highest in 10 quarters.

The U.S. Businesses reported adjusted operating income of USD 1.173 billion versus USD 1.188 billion. Retirement earned USD 620 million versus USD 637 million, with net account values of USD 364 billion, up 3%, and total sales of USD 8.2 billion including USD 3.9 billion of retail Annuity sales, a record for Registered Index-Linked Annuities. Group Insurance earned USD 101 million versus USD 90 million, and Individual Life earned USD 199 million versus USD 153 million, helped by a reserve refinement. U.S. Legacy Products earned USD 253 million versus USD 308 million as the traditional Variable Annuity block continued to run off. Corporate and Other recorded an adjusted operating loss of USD 349 million versus USD 353 million.

Capital and Portfolio Changes

Net income of USD 1.388 billion included USD 368 million of pre-tax net realized investment losses and related charges, of which USD 184 million were credit-related, and USD 295 million of pre-tax earnings from divested and run-off businesses. Book Value per common share was USD 84.88 versus USD 90.69, while adjusted book value per share rose to USD 102.39 from USD 99.25. Parent Company highly Liquid assets were USD 4.0 billion, and assets under management were USD 1.616 trillion.

Dividends paid were USD 1.40 per common share, a Yield of over 5% on adjusted book value. The company announced the sales of Prudential of Brazil, Prudential of Mexico and its South Africa insurance business, and closed the sales of its Indonesia and Kenya businesses, narrowing its geographic footprint. Following segment changes announced on October 15, 2026, the former International Businesses segment is now called Japan Businesses, and emerging market results sit within Corporate and Other.

Japan Businesses reported adjusted operating income of USD 559 million, down from USD 750 million.

Items to Follow

The duration of the Prudential of Japan sales suspension, flows at PGIM and completion of the announced divestitures are the items to follow.