Prudential Financial (PRU) Morgan Stanley US Financials, Payments & CRE Conference 2024 summary

Strategic focus and transformation

• Executed over 10 divestitures totaling $8.5 billion to concentrate on core businesses and reduce risk exposure.

• Streamlined operations and invested in technology, halving product time-to-market and enhancing organizational efficiency.

• Shifted away from volatile VA and GUL books, reducing their size and ceasing new sales, leading to lower earnings volatility.

• Enhanced capital flexibility, notably through the Prismic platform, enabling third-party capital participation.

• Expanded investment capabilities, especially in private credit and fixed income, to reinforce business growth.

Financial performance and momentum

• Achieved double-digit top and bottom-line growth in 2023, with robust core earnings and EPS increases.

• Growth momentum continued into Q1 2024, supported by strategic investments and a favorable macro environment.

Retirement and demographic trends

• Positioned to benefit from global aging trends, leveraging experience in Japan and the U.S. to address a $100 trillion retirement gap.

• Protection products remain relevant across demographics, with robust sales in Japan and growing retirement product demand.

• Younger cohorts show low retirement savings, driving future growth in savings and investment products.