Prudential’s U.S. Annuity Sales Reach $3.9 Billion, Highest Since 2013
Key Facts
Prudential Financial said U.S. individual annuity sales reached $3.9 billion in the third quarter of 2026, the highest quarterly level since 2013, within total sales of $8.2 billion. The company also said the quarter saw record sales of registered index-linked annuities. By contrast, adjusted operating income from its Japan business fell to $559 million from $750 million in the same period last year. The company attributed the decline to the sales suspension in Japan, along with higher expenses, weaker underwriting results and lower net investment spread results. The results highlight diverging performance across business units during the quarter, with strong U.S. sales accompanied by operating pressure in Japan.
Prudential said Japan sales, on a constant-dollar basis, were $291 million in the quarter, down 36% from the same period last year. The suspension of sales at Prudential of Japan was the main factor behind the decline, the company said. The suspension affected more than new business volumes; the company also linked the drop in adjusted operating income to higher expenses and less favorable underwriting results, as well as lower net investment spread results. In a preliminary disclosure in October, Prudential estimated that the sales suspension reduced Japan’s pretax adjusted operating income by about $140 million in the quarter ended September 30, 2026. The related costs, according to the disclosure, mainly included compensation for life insurance planners, lost sales and refunds.
At the group level, after-tax adjusted operating income was $1.321 billion, or $3.77 per common share, compared with $1.444 billion and $4.05 per share in the third quarter of 2025. The company also reported net income attributable to Prudential of $1.388 billion, or $3.96 per share, versus $1.431 billion and $4.01 per share a year earlier. The comparison shows year-over-year declines in adjusted operating income and net income despite the high level of U.S. annuity sales. The company presented these figures in its third-quarter results announcement, alongside operating-unit data and asset-management flows. These metrics provide a view of the group’s performance through both realized earnings and adjusted operating results.
At global asset manager PGIM, adjusted operating income rose to $263 million in the third quarter from $244 million a year earlier. Prudential attributed the improvement mainly to lower expenses following restructuring charges recorded in the year-earlier period, as well as higher asset-management fees. The unit recorded total net inflows of $7.4 billion, including $9.0 billion in third-party inflows, partly offset by $1.6 billion in outflows from affiliated entities. Institutional third-party flows were $7.7 billion, while retail recorded inflows of $1.3 billion. Total net flows reflect the combined effect of these external inflows and outflows from affiliated entities during the quarter.
Prudential returned $741 million to shareholders during the quarter, including $250 million in share repurchases and $491 million in dividends. Dividends paid were $1.40 per common share. These amounts are part of the third-quarter figures, alongside the operating results and net income announced by the company. In Japan, restrictions on new sales remain in place through January 31, 2027, after Japan’s Financial Services Agency extended the suspension; in its preliminary disclosure, the company estimated the suspension’s quarterly effect on pretax adjusted operating income at about $140 million. Among the upcoming dates listed by the company is a call to discuss third-quarter results, scheduled for November 4, 2026, at 11:00 a.m. U.S. Eastern Time.
In trading on November 3, 2026, Prudential shares closed at $25.29, according to EL7 data. No verified trading range for the session was included in the data available here. The close came a day before the scheduled management call to discuss results, while the suspension of sales in Japan remains in effect through January 31, 2027, under the regulator’s order. Prudential said its senior management team will host the call on November 4 at 11:00 a.m. Eastern Time. The call is scheduled to cover third-quarter results, including U.S. sales, pressure on the Japan business, and improved income and flows at PGIM.