Prudential Financial (PRU) 2 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to Prudential's quarterly earnings conference call. [Operator Instructions] As a reminder, today's call is being recorded. I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.

you our thank and morning, for call. joining Good Global are Chairman Andy of and Prudential PGIM, Head on Rob U.S. Lowrey, call today's our and Businesses; Chairman; Representing CEO; Feeney, Charlie Falzon, the International Manager; Investment Caroline of Head Sullivan, Vice Officer. Businesses; Accounting Financial and Chief Frias, and Rob Yanela Controller Axel, Officer; Principal

We will we by take questions. your comments will and Rob start Charlie, with prepared then Yanela, and

is make possible from Today's that results statements. discussion may materially we include may the It predictions today. forward-looking differ actual

our addition, to measures. In includes presentation non-GAAP references

Measures of can investor.prudential.com. For in the presentation today's a to be at reconciliation comparable please Statements which GAAP of quarterly in the those both that website and non-GAAP of slides such forward-looking the measures found measures the supplement, to and could the appendix a factors our from Forward-Looking see results to actual cause on financial statements, differ materially titled discussion and

turn I'll now it Charlie. And to over

Bob, you Thank you, all us today. of joining for and thanks to

During we continued long-term our capital-efficient stakeholders. become grow the second and to greater our for value quarter, market-leading more deliver businesses to

was our driven capital by international across strong businesses our investing capital shareholders. private our the excess originations to U.S. We performance robust as to well Our momentum as sales businesses investment platform. alternatives of growth PGIM's disciplined and by approach maintained in and in deployment and returning

our supported financial position. by was strong This progress

challenges strategic on they of investing financial to the we focus insurance Slide morning how address security remarks taking the retirement and around to customers position the actions Turning to X. will world. access and I are our this us expand evolving to my

increasing growth for opportunities of and product demand One global advice. retirement most is addressing solutions compelling the our

Japan XX. in U.S preparation opportunity Americans life XX-year-olds after in aging These This by will $XXX $XX same in crucial result the work. trillion an and At historic in time, year, demographics for the decade XXXX. before estimated retirement retirement of the levels trillion enter will will turn

As transfer the strategies products and pension for financially and risk the that is annuities, work retirement world. protect in our life's more delivering customers individual solutions secure a around people a leader of retirement and ensure

well market this first a the nearly risk FlexGuard from This Since launch by representing in and transfer XX% in of the Our in indexed half in doubling demonstrated exceeded $XX longevity billion. annuity includes suite sales. have risk product nearly retirement strategy year, individual as of the prior our pension our annuity increase sales sales is our variable leadership sales $XX robust year. billion XXXX, as

our by increasing the well growing management on expanded benefiting Japan, are asset alternative for in year-over-year. suite, demand solutions PGIM, and sales capitalizing global the investments. retirement business for an world customers from product increase while our around demonstrated positioned demand private to retirement is in savings Meanwhile, credit a institutional and XX% product address

provides of X/X supporting PGIM to servicing over delivers contribution XXX pension trillion and and plans pension largest sponsors is largest U.S. investment and half in management benefit of the the PGIM leader, world's manager market plan the funds, than more is of largest defined plans, a under Japan. XXX benefits $X.X defined solutions including pension with beneficiaries millions assets retirement nearly that help of fund

year business also our benefit XX% a with billion of the compared includes of quarter, quarter. continues grow of private increase acquisition Capital. Deerpath its to alternatives ago in $XX second recent PGIM a the capital nearly This deployment to

to our Moving now businesses. insurance market-leading

and demand our for have meet to can products the the and insurance life We growing product channels expanded global help that solutions bridge suite gap. distribution

X% in Individual diversification. Year-to-date, a expanded product a compared from of sales and Group XXXX. are up first This resulted U.S. to continue In sales strong distribution the mix. are has Insurance up more businesses, XX% our product Insurance to benefit shift half to and Life capital-efficient sales

In has our future initiatives the Brazil, our XX% planners. investment in in high from that capabilities of quality by underpinned increase third-party earnings translate a and and our strategy This continue is continued life of to Across growth. we resulted businesses, each the expand distribution in benefit our year-to-date sales. into

This includes and expanding learning machine and products to technology using artificial our intelligence, experiences. service deliver and and exceptional sales, distribution other claims

Slide to Turning X.

in deployment returning the approach $XXX disciplined our quarter. to million to Our capital shareholders supported while over during investments businesses

X. Slide to Turning

growth our diversified Our risk financial management framework and business strength, capital mix strategy. and supports

a capital asset liquid and Our at $X position, AA than well-diversified in billion approach investment a healthy the high-quality, assets including more management. of to liability second quarter, rating reflects highly disciplined end portfolio our the

business confident look that around will to are in support deliver to shareholders. the We world, to turn With opportunities position I strong evolving to us closer at strategy our put customers value our the financial that, a a and over long-term performance. individual our Rob strength, business for it our our

international results and business and on I'll the Thank PGIM, X for for you, of quarter our provide results financial an U.S. XXXX. our Slide our performance overview Charlie. financial businesses. second with begin I'll of

$X.X XX% ago adjusted and XX.X% on quarter operating the on $X.XX an year-to-date a from income was per after-tax year billion share Our basis. or pretax basis, up

fee higher the was of markets. continued the and These and interest results sales strategy reflect of rates market-leading benefit equity our to businesses. our the of Higher in strong grow income execution spread result

the include net and benefit update and the Results reserves. diversified quarter refinements other lower from current business annual a a impact reduction favorable were for assumptions our of in reflecting include legal also our mix. expenses modest Additionally,

our pivot to the support growth. year. return actions XX.X% was strength This adjusted operating we've efficiencies percentage we've the that more achieved capital-efficient taken of Year-to-date, on operating the has improved X.X benefits and to deliberate nearly and equity products from points businesses, the reflects from prior

Manager driven to Turning and from to appreciation. acquisition results higher performance, the operating favorable quarter. investment asset businesses management PGIM, contributions the ago fees, Deerpath compared market had our from Investment the by our Global equity Capital year

in related increase in fees Additionally, revenues. an resulted other higher incentive and transaction

expenses. U.S. spread income to higher partially support This and by driven Earnings in higher our growth business reflected higher interest by of favorable underwriting growth the benefit lower was offset expenses and businesses more results growth. rates, business

our a favorable relative annual less Life. favorable from strategies other driven in and refinements was impact more a favorable update a retirement by In update addition, offset update, Individual more partially by assumptions

underwriting due Results results, quarter reflecting traditional impact fee of lower refinements, partially This less also earnings. income we less businesses income by was behavior, update and spread annual included income. and lower primarily in included Results our other less variable intentionally international joint as legacy products. variable to relative favorable investment our annuity offset venture pivot assumptions an to higher unfavorable favorable market-sensitive policyholder the from

Slide with has equities capabilities across diversified public and both global of and under manager, performance our strong private asset Turning investment PGIM's in continues X. classes assets improve, XX% alternatives. PGIM, investment to benchmarks to exceeding fixed under XX% year. past their their management over outperforming X- contributed of periods, benchmarks the with This and favorably has and over management long-term respectively. XX-year assets to last the strong XX% over performance income,

by PGIM's trillion assets driven and under quarter, investment X% increased ago the by performance appreciation, to year $X.X affiliated market from flows. management net

billion. fixed outflows were clients. Third-party by net $X.X the X in primarily Institutional of in $X.X outflows driven large income billion quarter totaled

of income. partially by $XX.X Retail net and year-to-date and are equity offset institutional On a fixed episodic PGIM sub-advised funds to reflecting strategies large in third-party benefit outflows were inflows, public single basis, clients. $XXX pension of we by billion flows client from due were generated large the driven positive momentum million transactions. mutual

our As Prudential, and asset international growth investment management success expertise capabilities of the management capabilities, PGIM's support and private asset our PGIM's investment and businesses of and in engine sources Prismic, other of and the for launched origination the customers. U.S. retirement, capital, and businesses insurance. institutional more enhanced to bring recently solutions reinsurer and access advantage including competitive create helping value through our our

businesses, provide a growth well source affiliated Our insurance unique net for PGIM as to as of through insurance and liabilities. flows turn, retirement access in

$XXX has In addition, private by including origination platform, billion, driven which alternatives management our under of experienced direct private activity acquisition PGIM our businesses, assets credit from our Deerpath Capital. approximately strong diversified recent lending of

X. Slide to Turning

benefit Our and income net our earnings fees, complementary diversified and mix investment from U.S. underwriting spread longevity produced businesses. mortality businesses of and from

financial businesses transforming $X.X customer our and its across business. the lines institutional in quarter Prudential. on individual Retirement our and growing to focus new of across strategies to capabilities our billion strong leveraging capabilities of continue expanding market-leading with second solutions generated We experiences addressable sales market by improve the

of Institutional sales quarter sales, generated posted Retirement sales billion of and in $X.X pension transactions risk sales decade. of funded billion. $X.X has longevity billion. best transfer Individual billion $X $X.X sales of transfer over billion in risk included its Retirement U.S. Institutional of a Year-to-date, Retirement $XX

of have prior product year. annuity in from Our continued and have income FlexGuard resulted strong the doubled fixed pivots sales sales and FlexGuard

the of in a disability annuities. supplemental sales we first primarily year running Additionally, enrollments. off compared by prior annual occur in on Group driven XX% our life, year, to variable year-to-date continue sales to the growth by health. quarter market reduce legacy the based basis, increased and Insurance On sensitivity

We executing efficiency strategy our leveraging segmentation experience. increase and enhance of both client operating diversification and product to while technology are customer

X% FlexGuard These quarter resulted ratio from from in X% benefit year XX.X%. which more launch benefit and its in a of Life and In since and actions reached favorable include sales product, products. the Life, its increases capital-efficient sales to profitability the towards from improve pivot our performance year-to-date. Individual our increased ago highest quarter These XXXX

Turning to X. Slide

at model high-quality companies, differentiated where presence our providing expanding expanding businesses distribution in we as high-growth markets. international a offerings. and distribution aimed life Our and Japanese product as emerging insurance include In service our on businesses focused well are we Japan, our other have targeted multichannel

focus customers In compelling a market-leading our expand Our where and we to we our value. where opportunities and needs-based the build continue evolving value customers' as Enterprise can are approach add selective their portfolio businesses there are where important needs markets, retirement Prudential protection are on product creating regions growing and emerging product to and to to of businesses offerings provide focused needs. meet

from These savings gaining customers year quarter. sales. Sales XX% Japan and expand up compared traction benefiting of our new with recent are current launches in quarter and product Higher products in were businesses sales our retirement the are to we offerings. the XX% ago as represented international

Brazil sales benefit driven distribution market the life by growth from of in emerging world-class our planners. expand we as continue addition, strong and third-party were In to higher, performance

retirement well global access a look businesses in ahead, to our we to across be are positioned leader and we As investing, insurance security. expanding

markets, range and the investing creating focus delivering businesses of generation to serve growth industry-leading continue of a We on customers. and solutions diverse needs next to experiences of the customer financial in broad

And with Yanela. over hand to that, it now I'll

items. per third sense of begin into we and the might a relative our basis. quarter the for on get $X.XX XXXX adjustments billion $X.X second Thank you, quarter which for results. second income the will our I of of resulted insight provides following share operating third develop, Slide Pretax earnings how To adjusted results quarter was to in Rob. XX, earnings after-tax an on quarter suggest for

other assumption quarter. our First, the net annual update million benefit and in a second of refinements in $X resulted

expectations driven variable $XX Second, the by in real lower below by estate million second was quarter, returns. investment income

Next, last, third quarter. in reduction the than expect the of underwriting of second the adjustment the expectations in second quarter timing $XX Expenses other legal experience below $XX by expected, million include for favorable $XX expenses quarter, million lower million items. in and and in reflecting reserves we seasonality a of was And expenses. we an and were

result, and Other $X.X loss have XXXX Corporate year we As lowered full billion. in a the expected to

market-leading earnings $X.XX expect to higher investment quarter. of planned. quarter, continued is power be businesses. per adjustments note if These third third support our that that key in as specific the and you earnings items and The combined initiatives $X.XX. third pivot our will get takeaway lower our our originally quarter, away exclude per businesses in growth we underlying would I to growth and from for share us increased capital-intensive more the a of the to In baseline share investments reflects our growth

the we provided other that items please there these to may quarter. consider, earnings factors per note have share that affect third be While in

Turning to Slide XX.

rating. Our capital position AA strength financial support continues our to

ratios objectives. are in regulatory excess AA our capital of Our

and substantial $X billion, flexibility, and were $X.X to assets range our returning $X preserving we target have capital billion investing of strength growth off-balance thoughtful capital our remain and in cash in sheet shareholders. to within businesses for resources. We our Our financial billion liquidity deployment, liquid long-term and

in to growing XX. Slide are Turning And we businesses. market-leading our summary,

questions. balance and is to to that, a we capital of maintaining supported your will our are We our by with be growth strength approach deployment, the sheet. And happy take disciplined

Our from Krueger Instructions] [Operator Ryan first is coming KBW. question from

of was the on Prismic. end additional progress getting first My update the transactions? give on before done you Can question would And another one you towards an year? anticipate your

investors share transaction Prismic recently. Ryan, completed and to initial we we it's aspirations the billion grow Yes, $XX Rob. our relatively well beyond that

third-party includes flow new we of to sales transaction balance we've multiple be on not a very on I our Japan. where would optimization, if as be solutions That year-end. businesses entered pipeline we pipeline active sheet ongoing across insurance focus transactions. particular a before would as blocks continue work into We or well additional an have -- disappointed

second And some total one just I revisit to on you the sensitivity, rates. your can on perspective the short-term was you addition hoping the earnings between parts moving the sensitivity's And -- of give think in different businesses? some could

short-term rates. Yes, expect with due much in rates, impact Yanela. it's to not -- we of Ryan, do to short-term regards rates changes an

fixed where derivatives earn receive pay holding yields. manage our collateral cash we And have short-term generally to this this rates company at the short-term duration We across by strategies retirement and and individual businesses. rate that is offset use and we interest and

So generally [indiscernible].

since address our respect over increased few long-term higher rise both over levels recent the international. have yields the some to Let And past have in past the With this movement. seen has domestic rates, which and rates benefited me are than in significantly also been decade. we we've at that from years, long-term portfolio rates

ALM high were lastly, but volatility yields. rates, for the a future If reduces and rates money us spread a do has money rates portfolio out we And we healthy very spread risk of it that in-force. new and have our significantly point decline, would which a reduce been would have it So our I tailwind. between new approach, disciplined to

question Next Suneet coming Kamath is Jefferies. from from

about last quarter, pretty optimistic guess annuity were I industry guys sales. the you

given I good. if neighborhood, And about year-to-date, for becomes the we've kind think rates the annuity pretty do the move pricing billion. And this in thinking will growth? you $XXX is, the so XX-year that think this that I of you rate are dampen closely, in somewhere said you seen over X.X% that's how now, tracking new demand my with that's guess question in environment?

So and Caroline, your Suneet, it's question. I'll take

the possible you last as in interest levels, right So fixed rate XX%. that the pullback strong a by from referenced, extremely continues third market to year, the record record It's annuity straight be decreasing see pace environment, in outpacing rate on some annuities. year's particularly certainly over with now, deliver run we to could market sales a

us, our just the overall perspective, annuity really the while a fixed very piece Prudential From pleased been a we've portfolio. of with growth in for sales, it's

have the product had ever portfolio overconcentration any We broadest we've with no in single product.

record those solutions, In of fact, rates. in this distinct sales X past X and quarter, of [indiscernible] which we less interest are actually had are to products, sensitive

that as growth Suneet, the to do deliberate of across from rapid for We Americans demand strategy, savings the strengthening all increased opportunity. see solutions lifetime age tailwinds in XX the we're over population income. also protect customers set very reflects broader enables retirement provide as well and our retirement which really Frankly, serve excited of very conditions. And broadest us this about market

the term, strength solutions to believe our force over for will the demand well Suneet, positioned that you a protected of and and growth the finally, we're we distribution. be behind demand and asked continue And with income to long question driving our pricing. portfolio about diverse customer of So brand meet

pricing revised continue market and ability We are positioned changing very which markets. pricing we be order, which enter the to with to short with adapt in with also well the us discipline, to enables our have very nimble pricing very

Okay. again. for sense. on And then That makes guess Rob, I Prismic

deal is we it? sort you're you that of said the that be this Should be or if do a the not first of think proof-of-concept you'd side on year. that something the way that that as do? thinking didn't about sort about smaller disappointed Should You you deal

So it deal. actually would second be Suneet, the

So in the first and was reserves billion transaction so we closed size. relatively $XX about in significant

of dependent I what nature the the of transaction, to transaction, liabilities next and what going and is upon the say is be impacts of that's sort that hedging collateral For sizing needs. would sensitivity, the market underlying

not we're of Prismic well. as a that would it because of be fits or capital simply the function appetite sure constructing really access So constraining that other all capabilities. portfolio, or just together making we're It to

way And leaning flow, third in talked about that of one there you've leaning you've the Is you own about the Like in one particular you've in-force, or you're other talked terms talked about are uses? way party. your on that? different

flow things are Well, I is -- would both incidentally, that on. actively priority, But optimization probably party and most Suneet, for we say worked third us, the and of balance working they continued as the our well. are sheet controllable high being priorities highest and the we're

Greenspan from Your next Fargo. is Elyse from Wells coming question

I PGIM. you more the on the side the of was had is outflows for color quarter, to you but think just on institutional pension year? out how hoping called the question retail and flows, and about in large the know in on trends first My both X guys I get outlook balance

Sure. Elyse, take it's I'll Andy. that.

flows in manager start so of This have largest So the variable. there. side very the institutional pension and on clients. of PGIM become the have me large globally, we strategic assets mostly We're driven is let business, benefit more our defined sixth

If you either exploring those we PRT. of look benefit or as at overfunded today, many and here are portfolios, are they're clients sit derisking defined these

as our to leading money a in in seeing normal a motion, institutional than we're variability So more institutional flows. result,

that expect PRT leading that we PGIM fixed business. Overall, income given and of our a environment, will be beneficiary solutions our world-class

benefit back pension across though PRT large If quarter, you look inflow. noteworthy us the a step year, and with last take and a mandate saw wins you

year-to-date at our few the derisked across saw and are but $XX institutional year, is, positive look billion. you we fixed quarter, This when moved income the a as important clients part outflows flows of our

with improvement. clients versus inflow back into our retail our flows flat, money are flows the fixed starting assets in business, to products experienced that believe We this see retail market market have over On once is large last billion trillion $X side Year-to-date, sitting that's to income start improvement accelerate active is a to this $X.X in and we We're the quarter. year. positive products. longer-term to move poised into of

rates to And be action. going to are we that expect declining the trigger that

So the term, the near-term in remain expect It this will a but continue is environment. will over punchline should you we net that long overall variability. from a expect perspective flows winner we

And Results then group side. my were was on pretty the strong. second question there

think trending how ratio Just there. anything And benefits balance that about calling year? we of the business one-off the the you're should then over in

your There's it's nothing much Elyse, really Sure. very one-off, and by Elyse, take in different I'll strength question. Caroline, was business, few that's core driven it's a factors. but really which the

First of continue all, continue and claims we mortality favorable management, on in. by disability strong to driven group by focus life is we and an our invest to see area results effective which

to in portfolio. also in us helping segments, is health And X,XXX business, a strategy. strong continue our diversification double-digit growth We our also see growth broaden market of further component in association our lives we've supplemental seen under our which core our

So is the it's attractive at overall, Elyse, so margins. growing business doing and

on with delivered line your benefit coming In year the very XX%, question of in terms in at XX% and we XX%. of to result a the target below our strong ratio, ago quarter range

we end have the expect we of range. target half towards range for that Given for would be the our year, you been the lower first the can target that year, below of

question Research. coming Wesley from from Next is Carmichael Autonomous

either ongoing touch impact to quarter? cash [indiscernible] the do think that the flow? or unfavorable there's hoping drove on earnings an impact could Life, Individual I in And On review assumption was you you

is This Yanela.

let of question. to saw. is moderate tends adjusted to to generally update income, take your that result multiline had a annual you a I assumption it modest mix And diversification operating up, business as the our benefit creates quarter risk and assumption this So update annual the step a impact. me this mean, take

modest for assumed. about net the and as And to by policyholder post-COVID due due life, question was So offset retirement behavior impact updates for your was life levels experience to negative individual previously to retain higher the the life favorable life benefit to primarily partially institutional insurance mortality what life policies surrender to updates than impact their strategies, individual lower individual both large individuals universal drove unfavorable at guaranteed the Japan.

And this studies. business experience on was updated number and of of examination our from a of our emerging industry information based data available

drove So as the we what update, impact small and ongoing that assumption well. the have is update from do assumption a

Got is statutory there that any impact? it. impact Is operating And is from impact? an ongoing an that that? earnings Or

income there's end we statutory a there, operating perspective. assumption the process perspective, an ongoing From the From year. have a the is that update a standpoint, at So process. done of

our meaningful the that, reflected or to that expected be deployment statutory our So the not capital are impacts flows said capital of will to end availability, assessment plans. any of results year. at Having be in cash our

think expectation maybe have the your estate to No, about for my in of variable income, half that's some year. real I great. then quarter competitors follow-up back investment improve And on of the equity an returns this talked

or curious if just the not. have you So outlook guys same

I'll question. continued estate that the basis, at valuation across has look industry, an actually be of Rob. will the be those overall real through single though, I declines if from take forecast declines industry our we It's the in that year remainder low will the there investment digits. the a valuation would say that group

think trough around, of quite we're where we're the close at begin that we could to while turn sure yet. we're an inflection that not to point So

Tom coming from from Gallagher is question next Your Evercore ISI.

actuarial Just follow-up the review. a on

income statutory talk most sort the And about $XXX you changes? so GAAP-only And that what mind Was I came b, review well? that the Do assumption that release there a, net just a utilization of a -- be will be impact or correct? of as think from from [indiscernible]. impact? can you change? drove the million Or will is

it's Tom, Yes, Yanela.

driven by the and really also really is with and to methodology with the manage annuity consistent actually non-AOI it [indiscernible] was due more we a So standards this to be mainly the to and consistent yes, how valuation impact product. update was industry

impact, GAAP and annuity capital valuation only, it's is that a the we reserving it comparable standards. variable is following methodology will change, So and so statutory normal not just see

you. Got

comment weakness my business? institutional what in underwriting then earnings in Was just going forward it caused of visibility about how And spreads, expenses? some is, quarter? retirement the this follow-up you you And do Okay. feel on can that

Yes.

So Caroline. Tom, it's

much So business prior quarter. time weakness for the does compared I a institutional year take it If side transfer quarter to take see don't our in given are up earnings reported we transactions see and the especially both the to just moment, in the the materialize our earnings. core actually earnings, from risk impact of this

So in essence, then Tom, will and leads earnings obviously, sales follow.

less favorable $X as and sales of had see drivers quarter We fuel the believe X profitable that rapidly did and side, we in growth. U.S. individual there past demand the on this growing quarter, institutional then to our lower this side. well billion some for as earnings. will pension key are continue our in Tom, derisking underwriting VII markets on core We the international And

across our a sales I best includes First, in especially we're this as heard, quarter sales will strong, The portfolio, past products also you through was driving over the would profitability. to fixed quarter, future our strong products point volumes decade. which expanded these our [indiscernible] drive and higher

over near decision guarantees. sell those traditional distribution no benefit profits the the by to annuities impact with the tempered costs levels. And higher upfront with second, higher from term, variable our associated are But the longer then there's living sales

$X generate billion off the business. While of our from this income, will $X business at run per some quarter, it continues new strong offsetting roughly to earnings billion to fee growth

an annuity as higher you're of sales transition. those but contributing largely the the Ultimately, impact on this traditional block. we quality earnings, business see are from a still strong putting going variable our we're runoff intentional and But to like we see

Our question next from John Barnidge Piper is from Sandler.

at in you of about wage how group and growth point opportunity. is much then growth the versus employee coverage? coming that and adding from appreciate I more Can channel talk the this

Caroline. take John. Sure, I'll It's your question.

lives So overall and which strategy, driven our X,XXX growth will on health John, further organically grow be benefiting to of in the in and execution diversifying primarily employment driving our is block. diversification which is by as market disability on our and growing wage from employee focus as book We're the focused the and and products. growth well the to in continues strong certainly continue supplemental under

more at you what by driving when on is fundamentals and executing the look it strategy. However, growth, driven is strong our our underlying primarily

terms our year. say thing made in premiums our that spreads you. on I out also more X,XXX of lot So progress hopefully, market, one the our in a of under We've helps would across more also strategy. which diversification

to we're diversification. in So like what we see continuing our

question does the opportunity my through about look And international know be. select you focused on on opportunity like is What follow-up accelerate an building And there internationally? comment is markets. a to portfolio where set you're the in I want that M&A? to

Indonesia, growth So the it's market in markets John, our emerging Africa. a emerging you particular to in Andy. select I'll markets by And in investing extending leaders in footprint take in Asia and of through on and by emerging said, strategy our India as is our in accelerate international and general, our leadership position question. set Yes. Latin in or America, strengthening by in

business. in to mean leading Many markets seeing very us develop. opportunity I here to of very, of but good Brazil already growth very is growth time that you're healthy earnings take thing will think other I the important offer strong these block that good in is they

term So this about and well. is the medium as long

part As far bigger us. in We're is markets those growth programmatic our Prudential absolutely the pie. going as one for become confident a of to M&A M&A, we accelerate over organic us emerging are open always, time, help be to But as will to that markets. job opportunistic growth

Bhullar from JPMorgan. from coming is question Next Jimmy

Yanela I question a deployment. for on Rob, maybe had capital for just or

relatively modest most cash of and your the have a Your peers, flows capital been stock trades levels at relative fairly are strong. pretty to even buybacks multiple. Yet obviously as low

buybacks you other So could of just talk capital. uses wondering about versus appetite for if your

Yanela. Jimmy, it's

So remain Look, well capitalized. we

ratio XXX%. excess objective saw AA our You RBC PICA of in of

increased that out growth and our in billion seen strong you've insurance bit, a are continue PRT we of liquid large the our with year-to-date pay to exceeding and mentioned. businesses, We transactions that, we've dividends even funded assets where businesses. And positioned continue closed our X subsidiaries our of invest to of to all we and you $XX growth across as in highly liabilities,

we But deployment. our thoughtful capital remain will in

We will flexibility, in opportunities remain growth focused our shareholders. and businesses on a preserving we of see where lot for long-term strength investing financial returning then capital to and

just for sales in Okay. your that for on volatility Japanese your ask you in market? thinking I just views depressing the that's there. just Japan high some given And think business about [indiscernible] are in yen, could business, trends and the I in the if your But the how products demand sales the outlook about outlook

question. take Jimmy, Maybe experienced strong independent with I'll Planner we're very, the results sales channels and it's our work our in year-over-year. portfolio innovate start We and to our let by That that Japan saw. in year-over-year sales growth me agent Andy. saying from bank Yes, Life pleased is the our we very to business. and in and enhance continue just product experience broaden customer up the flowing really XX% were

up, and our fact of is including our we've offerings products, sales offerings. affordable U.S. that be the strengthening strength U.S. The expanding year-over-year life effects flowed Obviously, the and XX% make been a XX% we here and quarter the from both will products addition more are dollar benefit in -- product think our in our this yen recent introductions, we've dollar more yen as weakening. from consumer. to we seen, we it to them that with will see Lately for annuity

U.S. rates. still of are advantage taking interest absolutely consumers interested in Japanese the

yen the this with we're movement week. So pleased

we've that sales to and with expect are trend. We the good and results continue pleased we shown, done the we've the work

used rational fairly that is market be years we've And heard it's it few a to because ago. from competitive that competition your some a in of much peers more market than

overall, in times, businesses rational with I'll a we see by aggressive. product At competitively good as compete the the to advantaged a it would see for brand. and a competitive, differentiated we competitor market and saying but say, are yes, marketplace drive you start And profitability. good we're with a rational. is But broad drive ability may all distribution us portfolio, I get Jimmy, Yes.

and for customer what So the competition matter no is we we shareholder. reinforce does, last the disciplined and thing I will make that that be the deliver sure always the

Citi. from Ward Michael from coming is question Next

that the wondering I have life have sense like looked if wondering you would I wondering GUL in how if had for was types of the market or any was reserve -- done on risk have that opportunities? like deal? Does keep I transfer you -- sense individual charge. guess, updates. any assumption the of curious the And I'm was further if these you I not you of actions

So Mike, it's Yanela.

me take question. Let your

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PGIM. for disclosure the noticed I then And Okay.

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floor any turn over the question-and-answer to further of closing reached We end have comments. for the our I'd like back session. or

Charlie. Sure. This is

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make past obviously, I'll prologue, following is a but observation. the Now

times that these volatility. need retirement insurance the security is of have be in investing, clients that terms capabilities we in them laser-focused and we that as during And will that through and map this exactly helping they

our all So go continue forward. clients, and we'll we we'll sustainable focus to deliver as to on our to continue value stakeholders

So weekend. thanks and have an enjoyable

teleconference does That webcast. today's you. and Thank conclude

your disconnect may participation You wonderful day. and lines at have today. a this time, We you your thank for