Prudential Financial Board of Directors appoints Chief Executive Officer Andrew Sullivan as Chairman
Prudential Financial, Inc. announced that its Board of Directors has appointed Andrew Sullivan, currently serving as Chief Executive Officer, to the additional role of Chairman of the Board, effective March 10, 2026.
Sullivan succeeds Charles Lowrey, who resigned as Executive Chairman and director on March 10. Lowrey will remain with the company as a senior advisor through the end of the second quarter, when he will retire from Prudential. During his 25 years of distinguished service to Prudential, Lowrey served as Executive Chairman beginning in 2025, Chief Executive Officer from 2018 to 2025, and Chairman from 2019 to 2025.
“I’m honored that the Board has asked me to take on the additional role of Chairman,” said Sullivan, “It’s a privilege to lead the company at this pivotal moment. I have strong conviction in our strategy and the progress we’re making as we continue to execute with discipline and deliver long-term value for our customers and shareholders. On behalf of our Board and the entire company, I would like to thank Charlie for his leadership and significant contributions to Prudential.”
As Chairman and CEO, Lowrey established a foundation for the company’s next phase of growth, presiding over a series of growth investments, derisking transactions and organizational changes to strengthen the company’s competitive position in the marketplace. Lowrey also led Prudential through the COVID-19 pandemic, where he oversaw multiple initiatives to support Prudential employees, customers, and the communities in which Prudential operates.
Reflecting on his career, Lowrey said, “It has been an honor to serve Prudential for the past 25 years. I’m proud of what we’ve built together and grateful to our employees, Board, partners, and shareholders. Andy is a proven leader, and I have great confidence in him and the broader leadership team as Prudential enters its next chapter.”
“On behalf of the Board, I want to thank Charlie for his long and distinguished service to Prudential,” said Michael A. Todman, Prudential’s Lead Independent Director. “I look forward to continuing to work closely with Andy and the Board on areas of governance and stakeholder engagement, supporting strong alignment and continuity as Andy leads the company forward. His deep experience and knowledge of our business put him in a strong position to steer Prudential’s growth.”
Prudential Financial elects Maryann Mannen to Board of Directors
Prudential Financial Inc. (NYSE: PRU) announced that Maryann Mannen has been elected to the Board of Directors as an independent director, effective May 12, 2026, and contingent on shareholder approval. She will serve on the Board’s Corporate Governance and Business Ethics Committee and Compensation and Human Capital Committee.
Mannen brings to Prudential broad operational and financial expertise acquired over more than 30 years in the global energy sector. She currently serves as chairman, president and chief executive officer of Marathon Petroleum Corporation and its subsidiary, MPLX LP. Previously, Mannen was executive vice president and chief financial officer at Marathon Petroleum, where she oversaw all finance-related functions, investor relations, and supply chain operations, among other responsibilities.
“Maryann’s extensive leadership experience and strong financial acumen make her an excellent addition to Prudential’s Board,” said Sandra Pianalto, director and chair of the Board’s Corporate Governance and Business Ethics Committee. “She brings a well-informed perspective that will support the Board’s work and contribute to Prudential’s evolution to become a higher-growth company. We are excited to welcome her.”
Prior to her joining Marathon Petroleum, Mannen was executive vice president and chief financial officer of FMC Technologies, where she played a critical role negotiating and completing the company’s merger with Technip SA, and where she served as executive vice president and chief financial officer of the merged company, TechnipFMC.
Mannen holds a master’s degree in business administration and a bachelor’s degree in commerce and accounting from Rider University. She serves as chairman of the board for Marathon Petroleum and MPLX LP. Mannen is also a director at Owens Corning, where she chairs the Audit Committee and serves as a member of the Governance and Nominating and Executive Committees, but will not stand for reelection at their upcoming Annual Meeting of Stockholders.
Prudential Financial expands EssentialTerm suite, affordable and flexible life insurance to help protect what matters most
Prudential Financial, Inc. (NYSE: PRU) has announced the expansion of its EssentialTerm Suite for policies of $250,000 face amount and above, offering more consumers greater choice to match their individual needs and budgets. Designed with the flexibility to transition to permanent coverage for long-term financial security, the suite of solutions helps customers protect what matters most now and as their needs change.
Prudential’s EssentialTerm Suite features two enhanced term life solutions issued by Pruco Life Insurance Company. EssentialTerm Value® is Prudential’s most cost-effective option for consumers seeking temporary protection with the option to convert to a permanent policy as financial goals evolve. By converting to a permanent policy, consumers can benefit from lifelong coverage and additional benefits like cash-value growth. EssentialTerm Plus® offers a more robust conversion option for consumers who are focused on their long-term financial planning goals.
“At Prudential, we recognize the important role life insurance plays in safeguarding your life’s work, not only as death protection but for long-term planning,” says Rob Schaffer, Prudential’s head of Product Design and Innovation, Individual Life Insurance. “The EssentialTerm Suite bridges short-term needs with opportunities for lasting value, empowering policyholders to convert to permanent life insurance as their lives evolve.”
Key features of the EssentialTerm Suite include:
– Flexible Term Options: A choice of 10-, 15-, 20- or 30-year term durations, with guaranteed consistent premium payments throughout the selected term.
– Conversion to Permanent Policies: The ability to convert to one of Prudential’s permanent life insurance policies, maintaining the same health underwriting classification. Additionally, a conversion credit is available within the first seven years to help reduce premiums during the transition.
– Terminal Illness Rider: Automatically included, the rider allows access to a portion of the death benefit if the policyholder becomes terminally ill.
– Optional Riders: Customers can enhance the policy with additional riders, such as the waiver of premium in the event of disability, an accidental death benefit and convertible life insurance for a child.
The EssentialTerm Suite is designed with a quick and straightforward approval process, featuring online interviews that take approximately 20 minutes. It also qualifies for PruFast Track, Prudential’s accelerated underwriting process, which eliminates the need for medical exams and lab work. Additionally, applications can be seamlessly tracked and managed through Prudential’s new Life Case Tracker.
The EssentialTerm Suite joins Prudential’s comprehensive portfolio of term and permanent life solutions, including universal life, indexed universal life, indexed variable universal life and variable universal life insurance. “We’re expanding and enhancing our product portfolio to meet a wide range of life insurance needs, providing more protection and flexibility as financial needs change. We’re committed to helping our customers build financial security and unlock financial opportunities,” adds Schaffer.
Prudential Financial, Inc. Announces Second Quarter 2023 Results
Prudential Financial, Inc. reported second quarter results. Net income attributable to Prudential Financial, Inc. was $511 million ($1.38 per Common share) for the second quarter of 2023, compared to a net loss of $1.010 billion ($2.71 per Common share) for the second quarter of 2022. After-tax adjusted operating income was $1.087 billion ($2.94 per Common share) for the second quarter of 2023, compared to $895 million ($2.34 per Common share) for the second quarter of 2022.
Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this press release under “Non-GAAP Measures” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.
RESULTS OF ONGOING OPERATIONS
The Company’s ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.
PGIM
PGIM, the Company’s global investment management business, reported adjusted operating income of $179 million for the second quarter of 2023, compared to $206 million in the year-ago quarter. This decrease primarily reflects lower asset management fees, driven by net outflows and rising rates, and higher expenses, partially offset by higher other related revenues, driven by higher seed and co-investment income.
PGIM assets under management of $1.266 trillion were up 1% from the year-ago quarter, primarily resulting from equity market appreciation, partially offset by higher interest rates and net outflows. Third-party net outflows of $5.2 billion in the current quarter were driven primarily by redemptions from public equity strategies and reflect institutional outflows of $3.0 billion and retail outflows of $2.2 billion.
U.S. Businesses
U.S. Businesses reported adjusted operating income of $956 million for the second quarter of 2023, compared to $573 million in the year-ago quarter. This increase includes a favorable comparative impact from our annual assumption update and other refinements of $1.606 billion, partially offset by the absence of a one-time gain on the sale of a block of legacy variable annuities of $1.448 billion. Excluding these items, current quarter results primarily reflect higher net investment spread results and more favorable underwriting results, partially offset by lower net fee income.
Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $876 million for the second quarter of 2023, compared to $2.181 billion in the year-ago quarter.
Institutional Retirement Strategies:
Reported adjusted operating income of $428 million in the current quarter, compared to $432 million in the year-ago quarter. This decrease includes a less favorable comparative impact from our annual assumption update and other refinements of $8 million. Excluding this item, current quarter results primarily reflect higher fee income from business growth. In addition, net investment spread results reflect business growth, offset by lower variable investment income.Account values of $259 billion, a record high, increased 10% from the year-ago quarter and reflect business growth driven by significant pension risk transfer transactions. Sales in the current quarter of $5.7 billion included $3.6 billion of international reinsurance transactions.Individual Retirement Strategies:
Reported adjusted operating income of $448 million in the current quarter, compared to $1.749 billion in the year-ago quarter. This decrease includes a less favorable comparative impact from our annual assumption update and other refinements of $7 million and the absence of a one-time gain on the sale of a block of legacy variable annuities of $1.448 billion. Excluding these items, current quarter results primarily reflect higher net investment spread results, partially offset by lower fee income, net of distribution expenses and other associated costs.Account values of $115 billion were down 6% from the year-ago quarter, reflecting the reinsurance of a block of legacy variable annuities and net outflows, partially offset by market appreciation. Sales of $1.9 billion in the current quarter increased 19% from the year-ago quarter, reflecting continued momentum from our FlexGuard products and increased sales of fixed annuity products.Group Insurance:
Reported adjusted operating income of $139 million in the current quarter, a record high, compared to $54 million in the year-ago quarter. This increase includes a favorable comparative impact from our annual assumption update and other refinements of $39 million. Excluding this item, current quarter results primarily reflect more favorable underwriting results in both group life and disability, partially offset by higher expenses driven by business growth.Reported earned premiums, policy charges, and fees of $1.4 billion increased 7% from the year-ago quarter, reflecting growth in disability.Individual Life:
Reported a loss, on an adjusted operating income basis, of $59 million in the current quarter, compared to a loss of $1.662 billion in the year-ago quarter. This lower loss includes a favorable comparative impact from our annual assumption update and other refinements of $1.582 billion. Excluding this item, current quarter results primarily reflect higher net investment spread results.Sales of $197 million in the current quarter increased 27% from the year-ago quarter, driven by Variable Life, reflecting our pivot to less market sensitive products.International Businesses
International Businesses, consisting of Life Planner and Gibraltar Life & Other, reported adjusted operating income of $784 million for the second quarter of 2023, compared to $692 million in the year-ago quarter. This increase includes a favorable comparative impact from our annual assumption update and other refinements of $32 million. Excluding this item, current quarter results primarily reflect higher emerging market earnings.
Life Planner:
Reported adjusted operating income of $487 million in the current quarter, compared to $443 million in the year-ago quarter. This increase reflects higher net investment spread results and business growth.Constant dollar basis sales(4) of $250 million in the current quarter increased 12% from the year-ago quarter, primarily driven by record high sales in Brazil, as well as higher sales in Japan.Gibraltar Life & Other:
Reported adjusted operating income of $297 million in the current quarter, compared to $249 million in the year-ago quarter. This increase includes a favorable comparative impact from our annual assumption update and other refinements of $32 million. Excluding this item, current quarter results primarily reflect higher emerging market earnings, partially offset by lower net investment spread results.Constant dollar basis sales(4) of $251 million in the current quarter increased 6% from the year-ago quarter, primarily driven by the Bank channel.Corporate & Other
Corporate & Other reported a loss, on an adjusted operating income basis, of $527 million for the second quarter of 2023, compared to a loss of $321 million in the year-ago quarter. This higher loss primarily reflects higher expenses, unfavorable foreign exchange rate impacts, lower net investment income, and lower income from pension and other employee benefit plans.
NET INCOME
Net Income in the current quarter included $765 million of pre-tax net realized investment losses and related charges and adjustments, including $51 million of pre-tax net impairment and credit-related losses, $3 million of pre-tax losses related to market experience updates, $16 million of pre-tax earnings from divested and run-off businesses, and $16 million of pre-tax gains related to net change in value of market risk benefits.
Net loss for the year-ago quarter included $2.438 billion of pre-tax net realized investment losses and related charges and adjustments, largely reflecting the impacts of rising interest rates, and also $104 million of pre-tax net impairment and credit-related losses, $710 million of pre-tax losses related to net change in value of market risk benefits, $515 million of pre-tax earnings from divested and run-off businesses, and $371 million of pre-tax gains related to market experience updates.
View Full Press Release
Prudential Financial to Reinsure $10B block of PDI traditional variable annuities with an affiliate of Constellation Insurance Holdings
Prudential Financial, Inc. announced an agreement to reinsure a portion of its traditional variable annuity block with an affiliate of Constellation Insurance Holdings, Inc., for proceeds at closing resulting in approximately $650 million.1
Under the terms of the agreement, Constellation’s affiliate will reinsure approximately $10 billion of Prudential Defined Income (PDI) traditional variable annuity contracts with guaranteed living benefits issued by Pruco Life Insurance Company (PLAZ), a subsidiary of Prudential Financial. This represents approximately 10% of Prudential’s remaining legacy in-force traditional variable annuity block by account value.
“We have successfully achieved our strategic objective of lowering our proportion of traditional variable annuities,” said Charles Lowrey, Chairman and CEO of Prudential Financial. “Looking ahead, we are focused on expanding access to retirement security and serving the income and protection needs of millions of Americans through our diverse and attractive portfolio of annuity solutions, including our FlexGuard suite and fixed annuities.”
New sales of the PDI product were discontinued in 2020, and the agreement will not result in any change of contract ownership, terms, fees or commission schedules for contracts included in the transaction. Prudential will continue to service the block and maintain its existing relationships with contract holders, broker dealers, and financial professionals.
The transaction is expected to close by the end of second quarter of 2023, with an effective date of April 1, 2023. Upon closing, Prudential anticipates a reduction to after-tax annual adjusted operating income of approximately $50 million.
Willkie Farr & Gallagher LLP served as legal counsel to Prudential, and Goldman Sachs & Co. LLC served as exclusive financial advisor.
1 Proceeds include statutory capital release of approximately $410 million, release of reserves, and ceding commission received, net of taxes.
Prudential Financial to sell $31B PALAC block of legacy variable annuities to Fortitude Re
De-risking transaction for 17% of Prudential’s annuity block advances transformation strategy by reducing exposure to traditional variable annuities with guaranteed living benefits and capital markets sensitivity
Affirms Prudential’s commitment to the individual retirement market and organic growth of protected outcome solutions, including FlexGuard
Underscores Fortitude Re’s leadership in providing comprehensive solutions for a broad array of long-dated insurance liabilities
Prudential Financial, Inc. (“Prudential”) and Fortitude Group Holdings, LLC, the parent company of Bermuda’s largest multi-line reinsurer (“Fortitude Re”), announced that they have entered into a definitive agreement under which Prudential will sell a portion of its in-force legacy variable annuity block to Fortitude Re for a total transaction value of $2.2 billion.1
Under the terms of the agreement, Prudential will sell one of its stand-alone legal entity subsidiaries, Prudential Annuities Life Assurance Corporation (PALAC), including PALAC’s in-force annuity contracts, to Fortitude Re, for an all-cash purchase price of $1.5 billion, subject to certain adjustments at closing, plus a capital release to Prudential and an expected tax benefit.
The PALAC block primarily consists of non-New York traditional variable annuities with guaranteed living benefits that were issued prior to 2011, which constitute approximately $31 billion or 17% of Prudential’s total in-force individual annuity account values as of June 30, 2021. PALAC complements Fortitude Re’s market-leading capabilities in designing tailored solutions for leading insurers that enhance capital efficiency and address strategic priorities.
Prudential will continue to service and administer all contracts in the PALAC block following the transaction to ensure a consistent experience for customers. Prudential does not expect there to be any direct impact to employee head count as a result of the transaction.
“We are pleased to have reached an agreement with Fortitude Re, which represents another significant milestone in Prudential’s journey to becoming a higher growth, less market sensitive, more nimble company,” said Prudential Chairman and CEO Charles Lowrey. “This transaction underscores how a partnership with the right expertise and financial strength can benefit our customers and investors, while also unlocking new opportunities for our businesses.”
“This transaction is an important step forward for Fortitude Re and demonstrates our expertise in delivering comprehensive and value enhancing solutions for our clients,” said Fortitude Re Chief Executive Officer James Bracken. “Our strong, diversified balance sheet, proven risk management capabilities, and access to Carlyle’s asset origination franchise are key differentiators that enable us to responsibly manage complex, long-dated insurance liabilities. I am excited about the partnership with Prudential and the strategic opportunities this acquisition creates.”
Prudential will retain its interest in all FlexGuard buffered annuity contracts and PALAC recently issued fixed and fixed indexed annuities through a reinsurance agreement with Fortitude Re and, subject to regulatory approvals, intends to offer those FlexGuard and other recent PALAC customers the option to replace the issuer of their contract with another Prudential subsidiary, with further details to be provided to applicable customers. Prudential will continue to sell new FlexGuard and other protected outcome solutions through additional existing subsidiaries.
“Prudential’s individual Annuities business in the U.S. remains an important component of our business mix and organic growth strategy,” said Prudential Executive Vice President and Head of U.S. Businesses Andy Sullivan. “Going forward, we will be better positioned to deliver new investment strategies like FlexGuard, which continues to achieve record success, and focus on creating the next generation of protected income solutions to help more Americans secure their financial future.”
The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close during the first half of 2022.
Upon closing, Prudential anticipates a reduction to pre-tax annual adjusted operating income of approximately $290 million. Proceeds from the transaction are expected to be used for general corporate purposes.
Debevoise & Plimpton LLP served as legal counsel to Fortitude Re. Sidley Austin LLP served as legal counsel to Prudential, and Goldman Sachs & Co. LLC served as exclusive financial advisor.
[1] Total transaction value includes the purchase price for PALAC plus a capital release to Prudential and an expected tax benefit.
Prudential Financial announces leadership succession for Assurance IQ
Allison Arzeno will succeed Michael Rowell as CEO of Assurance IQ, a wholly owned subsidiary of Prudential Financial, Inc., effective immediately. Arzeno will report to Andy Sullivan, executive vice president and head of Prudential’s U.S. Businesses.
Rowell, co-founder of Assurance, will transition to serve as a strategic advisor to Sullivan, where his expertise and strategic counsel will add value as Prudential delivers financial solutions to more customers across the socioeconomic spectrum. Mike Paulus, co-founder of Assurance, will step away from his role. During his five-year tenure at Assurance, Paulus was instrumental in developing and expanding the platform and driving growth for the company.
Arzeno joined Assurance in 2017 as chief data scientist, following a career spent as an executive, an advisor and in academia using advanced analytics and modeling to find new ways to improve health care and help people address their most important personal finance challenges.
“Allison is a superb combination of data scientist and business leader. She was instrumental in the building of Assurance’s innovative business model alongside Rowell and Paulus and has done an exceptional job scaling the business in her role as president,” said Sullivan. “We are confident that under Allison’s leadership, Assurance will continue to make strides in its mission to protect and improve people’s personal and financial health,” added Rowell.
“We are deeply proud of what Assurance has achieved in such a short amount of time. Allison has been a leader since the beginning and continuously exceeded expectations. I know we are leaving the company in very capable hands,” said Paulus.
Assurance was acquired by Prudential in October 2019. Since its inception, Assurance has seen more than 77 million shoppers through more than 343 million visitor sessions. Together, the leadership teams continue to leverage the combination of Prudential’s strong brand and Assurance’s direct-to-consumer reach.
Prudential Financial strengthens commitment to environment with new sustainability goals
Prudential Financial, Inc.’s new Global Environmental Commitment (GEC) expands the company’s support for sustainable investments through a wide range of business, operational and investment goals.
These new targets to reduce the company’s impact on the environment include:
– Reduce domestic emissions by 65% by 2050.- Improve recycling and composting measures to achieve a 65% waste diversion rate by 2025.- Allocate 10% of Prudential’s impact investing portfolio to sustainable investments by 2025.- Grant $25 million to support response to climate-related natural disasters through The Prudential Foundation by 2025.- Commit all of Prudential’s top vendors to support the GEC and invite them to report on climate change KPIs by 2022.
“Our commitment to shareholders, customers and employees goes hand in hand with our responsibility to the environment and ensuring it is protected for future generations,” said Margaret “Peggy” Foran, chief governance officer and corporate secretary at Prudential. “We are proud of the steps we are taking to deliver sustainable business and environmental outcomes.”
The full set of goals include operational targets to reduce the direct impact of Prudential’s business activities around the world, as well as investment targets which will enable Prudential to achieve sustainable and environmentally responsible returns for investors.
These global objectives were created following an extensive review of the current sustainability landscape and industry best practices, which include the activities of other leading financial services peers. Prudential also led research to ensure that Prudential’s new goals are aligned with the Science Based Targets initiative.
Each of Prudential’s businesses will be responsible for implementing the environmental commitment, with the support of the company’s Environmental Task Force, Sustainability Council, and vice chairman Rob Falzon.
The Corporate Governance and Business Ethics Committee of Prudential’s Board of Directors will review the environmental commitment and progress made against goals on an annual basis.
Prudential first introduced an environmental commitment in 2008, which outlined domestic goals.