Prudential Financial Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Prudential Financial, Inc. PRU reported third-quarter 2024 adjusted operating income of $3.48 per share, which beat the Zacks Consensus Estimate by 0.2%. However, the bottom line decreased 3.8% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Total revenues of $19.5 billion surged 94% year over year and beat the Zacks Consensus Estimate by 33.7%. The increase in revenues was due to higher premiums, policy charges and fee income and net investment income.Prudential Financial's third-quarter results reflect higher asset management fees, favorable underwriting and higher net investment spread results, partially offset by higher expenses.Prudential Financial, Inc. Price, Consensus and EPS Surprise Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. QuoteOperational UpdateTotal benefits and expenses amounted to $17.8 billion, which doubled year over year in the third quarter. This increase was due to higher insurance and annuity benefits, change in estimates of liability for future policy benefits, interest credited to policyholders' account balances, interest expense, amortization of acquisition costs, and general and administrative expenses. The figure was higher than our estimate of $11.8 billion.Quarterly Segment UpdatePrudential Global Investment Management’s (PGIM) adjusted operating income of $241 million in the reported quarter increased 14.2% year over year. This increase primarily reflects higher asset management fees, partially offset by higher expenses. The figure was higher than our estimate of $221.4 million. The Zacks Consensus Estimate was $223 million.PGIM assets under management of $1.400 trillion increased 15% year over year. The increase was due to equity market appreciation, lower interest rates, investment performance and net inflows. The U.S. Businesses delivered an adjusted operating income of $1.108 billion, which increased 1.8% year over year. The figure was higher than both Zacks Consensus Estimate and our estimate of $1 billion. This increase was due to more favorable underwriting and higher net investment spread results. It was partially offset by lower net fee income and higher expenses.International Businesses adjusted operating income decreased 5.5% year over year to $766 million in the third quarter. The figure was lower than our estimate of $791.7 million. This decrease was due to less favorable underwriting results and higher expenses. It was partially offset by higher joint venture earnings and higher net investment spread results. Corporate and Other incurred an adjusted operating loss of $487 million, wider than a loss of $438 million reported a year ago. The figure was wider than our estimate of a loss of $474.7 million. This higher loss was due to higher expenses.Capital DeploymentPrudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $471 million in the third quarter.Financial UpdatePRU exited the third quarter with cash and cash equivalents of $20.2 billion, which increased 19.6% from 2023-end.Total debt balance of $20 billion increased 2.7% from 2023-end.As of Sept. 30, 2024, Prudential Financial’s assets under management and administration increased 14.5% year over year to $1.74 trillion.Adjusted book value per common share, a measure of the company’s net worth, was $98.71, which increased 4.8% year over year.Operating return on average equity was 14.2% in the third quarter, which contracted 100 basis points year over year.Zacks RankPrudential Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other InsurersChubb Limited CB reported third-quarter 2024 core operating income of $5.72 per share, which outpaced the Zacks Consensus Estimate by 16%. The bottom line increased 15.6% year over year. Net premiums written improved 5.5% year over year to $13.8 billion in the quarter. Our estimate and the Zacks Consensus Estimate were both pegged at $14.3 billion. Pre-tax net investment income was $1.5 billion, up 14.7% year over year. The figure matched both the Zacks Consensus Estimate as well as our estimate. Revenues of $15 billion missed the consensus estimate by 1.5% and improved 6.5% year over year. Property and casualty (P&C) underwriting income was $1.4 billion, up 11.7% year over year. The Zacks Consensus Estimate was pegged at $1.1 billion.Kinsale Capital Group KNSL delivered third-quarter 2024 net operating earnings of $4.20 per share, which outpaced the Zacks Consensus Estimate by 13.5%. The bottom line increased 26.9% year over year. Operating revenues jumped 33.1% year over year to $418 million. The growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the consensus estimate by 4.2%. Gross written premiums of $448.6 million rose 18.8% year over year. Our estimate was $475.1 million. Net written premiums climbed 18.9% year over year to $349.9 million in the quarter. Our estimate was pegged at $370.2 million. Net investment income increased 46.4% year over year to $39.6 million in the quarter and beat our estimate of $38.6 million. The Zacks Consensus Estimate was pegged at $37.7 million.Selective Insurance Group, Inc. SIGI reported third-quarter 2024 operating income of $1.40 per share, which missed the Zacks Consensus Estimate by 17.1%. The bottom line decreased 7% from the year-ago quarter. Total revenues of $1.2 billion increased 13.9% from the year-ago quarter’s figure. However, the top line missed the Zacks Consensus Estimate by 0.4%.On a year-over-year basis, net premiums written increased 9% to $1.15 billion. The figure was higher than our estimate of $1.2 billion.Net investment income earned, before-tax, increased 17% year over year to $117.8 million. The figure was higher than our estimate of $117.3 million. The Zacks Consensus Estimate was pegged at $114 million. After-tax net underwriting income was $4.1 million, which plunged 83% year over year. Pre-tax catastrophe losses more than doubled year over year to $148.8 million.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chubb Limited (CB): Free Stock Analysis Report Prudential Financial, Inc. (PRU): Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI): Free Stock Analysis Report Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks