Prudential Financial Q2 Earnings Beat Estimates, Revenues Decline Y/Y

Prudential Financial, Inc. PRU reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year.

The quarterly results reflect continued positive momentum with solid sales across global retirement and insurance businesses as well as strong investment performance in PGIM.

Behind the Headlines

Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums.

Prudential Financial, Inc. Price, Consensus and EPS Surprise

Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. Quote

Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.

Quarterly Segment Update

Prudential Global Investment Management’s (PGIM) adjusted operating income of $229 million increased 11.2% year over year. The Zacks Consensus Estimate was pegged at $240 million.  Our estimate was $235 million. This increase primarily reflects higher asset management fees, partially offset by higher expenses to support business growth.

PGIM’s assets under management of $1.441 trillion were up 8% year over year, driven by fixed income and equity market appreciation, net inflows, and strong investment performance.

The U.S. Businesses delivered an adjusted operating income of $955 million, which declined 6.6% year over year. This decrease reflects an unfavorable comparable impact from the annual assumption update and other refinements of $111 million. The metric beat the Zacks Consensus Estimate by 2%. Our estimate was $442 million.

International Businesses’ adjusted operating income improved 8.4% year over year to $761 million in the second quarter.  This increase reflects a favorable comparable impact from our annual assumption update and other refinements of $53 million. Our estimate was $814 million.

Corporate and Other incurred an adjusted operating loss of $280 million, narrower than a loss of $371 million reported a year ago, reflecting lower expenses and higher net investment income. The Zacks Consensus Estimate was pegged at a loss of $451 million, and our estimate was a loss of $509.9 million.

Capital Deployment

Prudential Financial returned $735 million in capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $485 million in the second quarter.

Financial Update

PRU exited the second quarter with cash and cash equivalents of $16.1 billion, which decreased 13.2% from the end of 2024.

Total debt balance of $20.9 billion increased 4% from 2024-end.

As of June 30, 2025, Prudential Financial’s assets under management and administration rose 6.5% year over year to $1.8 trillion.

Adjusted book value per common share, a measure of the company’s net worth, came in at $85.98, which increased 10.9% year over year.

Operating return on average equity was 14.9% in the second quarter, which grew 140 basis points year over year.

Zacks Rank

Prudential 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 Insurers

Unum Group’s UNM second-quarter 2025 operating net income of $2.07 per share missed the Zacks Consensus Estimate by 7.2%. The bottom line decreased 4.2% year over year. Total operating revenues of Unum Group were $3.4 billion, up 4.2% year over year, driven by higher premium income and improved net investment income. The top line beat the Zacks Consensus Estimate by 1.7%. Premiums increased 4.6% from the prior-year quarter to $2.7 billion. The metric beat the Zacks Consensus Estimate by whiskers.

Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.

Arch Capital Group Ltd. ACGL reported second-quarter 2025 operating income of $2.58 per share, beating the Zacks Consensus Estimate by 11.7%. The bottom line increased 0.49% year over year. Gross premiums written improved 15.1% year over year to $6.2 billion. Net premiums written climbed 15% year over year to $4.3 billion on higher premiums written across its Insurance and Reinsurance segments. Pre-tax net investment income increased 11.3% year over year to $405 million. The uptick was driven by growth in average invested assets, due in part to strong operating cash flows.  The Zacks Consensus Estimate was pegged at $401 million. Our estimate was $411.5 million. Operating revenues of $4.8 billion rose 20.9% year over year, driven by higher net premiums earned, net investment income and other income. It beat the Zacks Consensus Estimate by 2.62%.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research