Prudential Financial Q3 Earnings Beat Estimates on Lower Expenses

Prudential Financial, Inc. PRU reported third-quarter 2025 adjusted operating income of $4.26 per share, which beat the Zacks Consensus Estimate by 16.3%. The bottom line increased 28% year over year.Prudential Financial's third-quarter results reflect higher assets under management, improved net investment spread, favorable underwriting results and lower expenses, partially offset by lower premiums.Prudential Financial, Inc. Price, Consensus and EPS Surprise Prudential Financial, Inc. price-consensus-eps-surprise-chart | Prudential Financial, Inc. QuotePRU’s Q3 Operational UpdateTotal revenues of $16.2 billion beat the Zacks Consensus Estimate by 16%. The top line, however, declined 16.6% year over year. The decrease in revenues was due to lower premiums.Total benefits and expenses amounted to $14.3 billion, which declined 20.3% year over year in the third quarter. This decrease was due to lower insurance and annuity benefits and operating expenses. The figure was higher than our estimate of $12.4 billion.Quarterly Segment Update of PRUPrudential Global Investment Management’s (PGIM) adjusted operating income of $244 million in the reported quarter increased 1.2% year over year. This increase primarily reflects higher asset management fees and other related revenues, driven by higher agency earnings and seed and co-investment income, and a gain from the sale of the Taiwan business. It was partially offset by higher expenses, including a reorganization charge. The figure was higher than our estimate of $168.2 million. The Zacks Consensus Estimate was $229 million.PGIM assets under management of $1.470 trillion increased 5% year over year. The increase was driven by equity market and fixed income appreciation and net inflows.The U.S. Businesses delivered an adjusted operating income of $1.149 billion, which increased 10.4% year over year. The increase was fueled by higher net investment spread results, including higher alternative investment income, and more favorable underwriting results. It was partially offset by lower net fee income and higher expenses to support business growth. The figure was higher than our estimate of $951.8 million. The Zacks Consensus Estimate was $1 billion.International Businesses’ adjusted operating income increased 15% year over year to $881 million in the third quarter. The year-over-year increase primarily reflects higher net investment spread results, including higher alternative investment income, as well as more favorable underwriting results. It was partially offset by higher expenses to support business growth. The figure was higher than our estimate of $812.5 million. The Zacks Consensus Estimate was $787 million.Corporate and Other incurred an adjusted operating loss of $327 million, narrower than a loss of $487 million reported a year ago. This lower loss was primarily due to lower expenses and favorable foreign exchange remeasurement impacts. The figure was narrower than our estimate of a loss of $331.4 million. The Zacks Consensus Estimate was pegged at a loss of $417 million.Capital DeploymentPrudential Financial managed to return capital to its shareholders in the form of share repurchases worth $250 million and dividends worth $481 million in the third quarter.Financial Update by Prudential FinancialPRU exited the third quarter with cash and cash equivalents of $17.5 billion, which decreased 5.5% from 2024-end.The total debt balance of $20.2 billion increased 0.2% from 2024-end.As of Sept. 30, 2025, Prudential Financial’s assets under management and administration increased 3.3% year over year to $1.81 trillion.Adjusted book value per common share, a measure of the company’s net worth, was $99.25, which increased 0.5% year over year.Operating return on average equity was 17.5% in the third quarter, which expanded 390 basis points year over year.PRU’s Zacks RankPrudential 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 InsurersEverest Group, Ltd.’s EG third-quarter 2025 operating income of $7.54 per share missed the Zacks Consensus Estimate by 43.7%. The bottom line decreased 48.4% year over year.  Everest Group’s total operating revenues of $4.3 billion climbed 0.7% year over year on higher net investment income. The top line, however, missed the consensus mark by 2.9%. EG’s gross written premiums declined 1.1% year over year to $4.4 billion. Our estimate was $4.8 billion. Net investment income was $540 million, which increased 8.8% year over year. Our estimate was $490.5 million. The Zacks Consensus Estimate was pegged at $511 million. Total claims and expenses rose 9.2% to $4 billion. Our estimate was $3.8 billion.Principal Financial Group, Inc.’s PFG third-quarter 2025 operating net income of $2.10 per share missed the Zacks Consensus Estimate by 3.6%. Also, the bottom line increased 19% year over year. PFG’s operating revenues increased 6.2% year over year to $3.8 billion, driven by increased premiums and other considerations, fees, and other revenues and net investment income. The metric missed the Zacks Consensus Estimate by 4.1%.Total expenses increased 3.8% year over year to $3.4 billion. The figure was lower than our estimate of $3.6 billion. As of Sept. 30, 2025, Principal Financial’s AUM amounted to $784.3 billion, which included $0.4 billion of net cash flow and assets under administration of $1.8 trillion. AUM improved 10.1% from 2024-end.Chubb Limited CB reported third-quarter 2025 core operating income of $7.49 per share, which beat the Zacks Consensus Estimate by 26%. The bottom line increased 30.9% year over year. CB’s net premiums written improved 7.5% year over year to $14.8 billion in the quarter. Our estimate was $14.4 billion, while the Zacks Consensus Estimate was pegged at $14.5 billion. Pre-tax net investment income was $1.65 billion, up 9.3% year over year. Our estimate and the Zacks Consensus Estimate were both pegged at $1.8 billion. Chubb’s revenues of $16.1 billion beat the consensus estimate by 1.6% and improved 7.4% year over year. Property and casualty (P&C) underwriting income was $2.2 billion, up 55% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Chubb Limited (CB): Free Stock Analysis Report Prudential Financial, Inc. (PRU): Free Stock Analysis Report Principal Financial Group, Inc. (PFG): Free Stock Analysis Report Everest Group, Ltd. (EG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks