Prudential Financial (PRU) FY2025 results: revenue $60.8 billion, down 13.7% on the year

Prudential Financial sells life insurance, annuities, retirement products and investment management in the United States, Asia, Europe and Latin America, to individuals and to institutions. Its head office is in Newark, New Jersey. The insurance company at its centre was owned by its policyholders until December 2001, when it converted to a stock company and became a subsidiary of the listed group.

How the group is split

The principal operations are PGIM, the global investment management arm; three US businesses, being Retirement Strategies, Group Insurance and Individual Life; the International Businesses; the Closed Block division; and Corporate and Other. Corporate and Other also holds the Divested and Run-off Businesses, which are businesses sold, exited or placed in wind-down that do not qualify as discontinued operations in the accounts.

The Closed Block, a consequence of the 2001 conversion

When the company demutualised it stopped selling participating individual life and annuity products in the United States, the kind under which policyholders share in experience through dividends. The in-force policies were segregated along with assets set aside exclusively to pay their benefits, dividends, expenses and taxes. That ring-fenced pool is the Closed Block division, and it is reported separately from the run-off businesses.

PGIM

Investment management for institutions, for retail clients and for Prudential's own insurance and retirement businesses. Asset classes are public fixed income; private credit and other alternatives including investment grade, high yield, direct lending, mezzanine financing and secondaries in small and mid-cap markets; public equity; real estate debt and equity; and multi-asset, largely liability-driven solutions for institutions. It sells to large institutions through an institutional client group, and to individual investors, defined contribution plans and financial intermediaries through a retail arm offering mutual funds, closed-end funds, exchange-traded funds and separately managed accounts in the United States, plus UCITS funds in parts of Europe, Asia and Latin America. Revenue is mostly a fee calculated as a percentage of assets under management, with performance fees where returns exceed a benchmark, and fees from commercial mortgage origination and servicing. PGIM also holds seed money in new products and co-invests alongside clients.

Retirement Strategies

The institutional half sells to pension plan sponsors in the public, private and not-for-profit sectors, in the US and mainly the United Kingdom abroad. Pension risk transfer works like this: a plan sponsor pays a premium, typically as a lump sum at inception, and Prudential assumes all the investment and actuarial risk for a named group of participants in the plan, paying them a monthly income generally for life. Beside it sit guaranteed investment contracts and funding agreements, structured settlements paying claimants tax-free over time, longevity reinsurance where Prudential is paid a fee over the life of a contract to carry the risk that pensioners live longer than expected, and stable value wraps over assets held in a client-owned trust. These reach the buyer through actuarial consultants, third-party brokers, specialist brokers and an internal sales force.

The individual half sells variable and fixed annuities in the US, aimed at mass affluent and affluent households. The FlexGuard range links returns to an index without investing in it, with set levels of protection against loss. Fixed annuities let the holder split between an index-linked and a fixed-rate option. Traditional variable annuities stopped being sold in 2020.

Group Insurance and Individual Life

Group Insurance sells group life, short-term and long-term disability, and corporate-, bank- and trust-owned life insurance used by large employers to fund deferred compensation and retiree benefit plans, plus supplemental health cover for accident, critical illness and hospital indemnity. Individual Life sells variable life, indexed variable life, universal life, indexed universal life and term life, to mass middle, mass affluent and affluent households, through independent brokers, banks, wirehouses, general agencies and producer groups. Group Insurance uses ceded reinsurance on most products, to limit losses from large claims, in response to client requests, and to manage capital.

International Businesses

Life insurance, retirement, investment and fixed-benefit accident and health products, sold predominantly in Japan, Brazil and Mexico, through joint ventures in Chile, China, India and Indonesia, and through strategic investments in Ghana and South Africa. It uses two proprietary agent models: Life Planners, who sell protection-oriented life insurance to mass affluent and affluent customers and retirement-oriented products to small businesses, and Life Consultants, who sell individual protection to the broad middle income market in Japan, particularly through relationships with affinity groups. The third-party channels are bank distribution and independent agencies. In February 2026, alongside an internal investigation into employee misconduct in Japan, the company voluntarily suspended new sales activity at Prudential of Japan.

From Prudential Financial's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 12 February 2026: read the full 10-K.