Prudential Restates International Businesses as Japan After Exit
After-tax adjusted operating income was $1.320 billion, or $3.75 a share, as PGIM pre-tax operating income reached $294 million.
Prudential Financial (PRU) said it would exit certain Emerging Markets businesses previously reported inside International Businesses, a move that will rename that segment Japan Businesses and shift Brazil and Mexico results into Other Divested and Run-off Businesses in Corporate and Other, effective in the third quarter of 2026.
The restatement also moves the company’s indirect 40% stake in AFP Habitat into Retirement. Second-quarter results were presented on the new footing.
Net income attributable to Prudential Financial was $985 million, or $2.80 a share, versus $597 million, or $1.68 a share, in the first quarter. After-tax adjusted operating income was $1.320 billion, or $3.75 a share, up from $1.204 billion, or $3.40 a share. Operating return on average equity based on adjusted operating income was 15.1%.
Total adjusted operating income before income taxes was $1.651 billion, up from $1.510 billion. PGIM, the global investment manager, posted $294 million of pre-tax adjusted operating income, up from $190 million. U.S. Businesses contributed $998 million. Corporate and Other’s pre-tax adjusted operating loss narrowed to $335 million from $347 million.
On the restated basis, Japan Businesses generated $4.041 billion of total revenues and $694 million of pre-tax adjusted operating income. Emerging Markets excluding AFP Habitat, now slated for divestiture, posted $608 million of revenues and $120 million of pre-tax adjusted operating income. AFP Habitat contributed $42 million of revenues and $41 million of pre-tax adjusted operating income.
Consolidated total revenues were $13.555 billion. Premiums were $5.910 billion. Net investment income was $4.984 billion. Asset management fees, commissions and other income were $1.522 billion. The change in estimates of liability for future policy benefits was $360 million. Realized investment losses, net, and related charges were $654 million. Other Divested and Run-off Businesses contributed $293 million.
Assets under management were $1.642 trillion at June 30. PGIM AUM was $1.491 trillion, with retail third-party AUM at $282.3 billion. U.S. Businesses AUM was $122.1 billion. Japan Businesses AUM was $17.2 billion.
GAAP book value per diluted share was $90.50. Adjusted book value per diluted share was $100.91. Capital returned totaled $743 million, including $250 million of share repurchases and $493 million of dividends.
The August 2026 announcement of the Emerging Markets exit would take effect in the third quarter, with Brazil and Mexico operating results reflected in Other Divested and Run-off Businesses and the former International Businesses segment renamed Japan Businesses.