保德信金融集團 (PRU) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Prudential's quarterly earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.

女士們、先生們，感謝你們的支持，並歡迎參加保誠集團的季度財報電話會議。（操作員說明）謹此提醒，今天的通話正在錄音。

I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.

我現在將把電話轉給鮑伯·麥克勞林先生。請繼續。

Good morning, and thank you for joining our call. Representing Prudential on today's call are Charlie Lowrey, Chairman and CEO; Rob Falzon, Vice Chairman; Andy Sullivan, Head of the International Businesses; and PGIM, our Global Investment Manager; Caroline Feeney, Head of US Businesses; Yanela Frias, Chief Financial Officer; and Rob Axel, Controller and Principal Accounting Officer. We will start with prepared comments by Charlie, Rob and Yanela, and then we will take your questions.

早安，感謝您加入我們的通話。代表保德信出席今天的電話會議的是董事長兼執行長查理‧洛瑞 (Charlie Lowrey)；羅布法爾松，副主席；安迪‧沙利文 (Andy Sullivan)，國際業務主管；以及我們的全球投資經理 PGIM； Caroline Feeney，美國業務主管； Yanela Frias，財務長； Rob Axel，財務長兼首席會計官。我們將從 Charlie、Rob 和 Yanela 準備好的評論開始，然後我們將回答您的問題。

Today's discussion may include forward-looking statements. It is possible that actual results may differ materially from the predictions we make today. In addition, our presentation includes references to non-GAAP measures. For a reconciliation of such measures to the comparable GAAP measures and a discussion of factors that could cause actual results to differ materially from those in the forward-looking statements, please see the slides titled Forward-Looking Statements and non-GAAP Measures in the appendix to today's presentation and the quarterly financial supplement, both of which can be found on our website at investor.prudential.com.

今天的討論可能包括前瞻性陳述。實際結果可能與我們今天所做的預測有重大差異。此外，我們的簡報也引用了非公認會計準則衡量標準。有關這些措施與可比較的公認會計原則措施的協調以及可能導致實際結果與前瞻性陳述中的結果存在重大差異的因素的討論，請參閱附錄中標題為前瞻性陳述和非公認會計原則措施的幻燈片今天的簡報和季度財務補充資料均可在我們的網站 Investor.prudential.com 上找到。

And now, I'll turn it over to Charlie.

現在，我會把它交給查理。

Thank you, Bob, and thanks to all of you for joining us today. During the second quarter, we continued to grow our market-leading businesses and become more capital-efficient to deliver greater long-term value for our stakeholders. Our momentum was driven by robust sales in our US and international businesses as well as strong investment performance and originations across PGIM's private alternatives platform. We maintained our disciplined approach to capital deployment by investing in the growth of our businesses and returning excess capital to shareholders.

謝謝你，鮑勃，也謝謝大家今天加入我們。第二季度，我們持續發展市場領先的業務，提高資本效率，為利害關係人提供更大的長期價值。我們的動力源自於美國和國際業務的強勁銷售以及 PGIM 私人另類投資平台的強勁投資表現和起源。我們透過投資於業務成長並將多餘資本返還給股東，保持了嚴格的資本配置方法。

This progress was supported by our strong financial position. Turning to slide 3. I will focus my remarks this morning on the strategic actions we are taking to expand access to investing insurance and retirement security and how they position us to address the evolving financial challenges of our customers around the world. One of our most compelling growth opportunities is addressing the increasing global demand for retirement product solutions and advice.

這一進展得到了我們強大的財務狀況的支持。轉到投影片 3。今天早上我的演講重點是我們為擴大投資保險和退休保障的覆蓋範圍而採取的策略行動，以及它們如何使我們能夠應對全球客戶不斷變化的財務挑戰。我們最引人注目的成長機會之一是滿足全球對退休產品解決方案和建議日益增長的需求。

This year, historic levels of Americans will turn 65. At the same time, 55-year-olds will enter the crucial decade before retirement in preparation for life after work. These aging demographics will result in an estimated $137 trillion retirement opportunity in the US and $26 trillion in Japan by 2050.

今年，美國人的歷史水準將達到 65 歲。同時，55歲的人將進入退休前的關鍵十年，為工作後的生活做準備。到 2050 年，人口老化將為美國帶來約 137 兆美元的退休機會，為日本帶來約 26 兆美元的退休機會。

As a leader in pension risk transfer and individual annuities, retirement strategies is delivering products and solutions that protect the life's work of our customers and ensure a more financially secure retirement for people around the world. Our market leadership is demonstrated by nearly $22 billion in retirement strategy sales in the first half of this year, representing a 67% increase from the prior year. This includes robust sales in pension risk and longevity risk transfer as well as nearly doubling our individual annuity sales.

作為退休金風險轉移和個人年金領域的領導者，退休策略正在提供產品和解決方案，保護我們客戶的終身工作，並確保世界各地的人們在財務上更安全的退休生活。今年上半年退休策略銷售額接近 220 億美元，比上年增長 67%，證明了我們的市場領先地位。這包括退休金風險和長壽風險轉移的強勁銷售，以及我們的個人年金銷售幾乎翻倍。

Since the launch of our FlexGuard indexed variable annuity product suite in 2020, our sales have exceeded $21 billion. Meanwhile, in Japan, our customers are benefiting from an expanded product suite, demonstrated by a 20% increase in retirement and savings product sales year over year.

自 2020 年推出 FlexGuard 指數可變年金產品套件以來，我們的銷售額已超過 210 億美元。同時，在日本，我們的客戶正從擴大的產品組合中受益，退休和儲蓄產品銷售額年增 20% 就證明了這一點。

PGIM, our global asset management business is well positioned to address the increasing demand for retirement solutions around the world while capitalizing on growing institutional demand for private credit and alternative investments. PGIM provides investment solutions that help retirement plan sponsors and delivers benefits to millions of beneficiaries.

PGIM 是我們的全球資產管理業務，能夠很好地滿足世界各地對退休解決方案日益增長的需求，同時利用機構對私人信貸和另類投資不斷增長的需求。PGIM 提供投資解決方案，幫助退休計劃發起人並為數百萬受益人帶來福利。

With nearly $0.5 trillion of assets under management supporting defined benefit and defined contribution plans, PGIM is a market leader, servicing more than half of the world's 300 largest pension funds, including over two-thirds of the largest 100 US pension plans and is the largest pension fund manager in Japan. PGIM also continues to grow its private alternatives business with capital deployment of nearly $11 billion in the second quarter, a 35% increase compared to a year ago quarter. This includes the benefit of our recent acquisition of Deerpath Capital.

PGIM 管理近0.5 兆美元的資產，支持固定福利和固定繳款計劃，是市場領導者，為全球300 家最大退休基金中的一半以上提供服務，其中包括美國100 家最大退休金計劃中的三分之二以上，並且是全球最大的退休基金日本退休基金經理人。PGIM 也持續發展其私人另類業務，第二季資本部署近 110 億美元，比去年同期成長 35%。這包括我們最近收購 Deerpath Capital 的好處。

Moving now to our market-leading insurance businesses. We have expanded our product suite and distribution channels to meet the growing demand for products and solutions that can help bridge the global life insurance gap.

現在轉向我們市場領先的保險業務。我們擴大了產品組合和分銷管道，以滿足對有助於縮小全球人壽保險缺口的產品和解決方案不斷增長的需求。

In our US Insurance businesses, strong sales continue to benefit from expanded distribution and product diversification. This has resulted in a shift to a more capital-efficient product mix. Year to date, Group Insurance sales are up 13% and Individual Life sales are up 7% compared to the first half of 2023.

在我們的美國保險業務中，強勁的銷售繼續受益於擴大的分銷和產品多樣化。這導致了向資本效率更高的產品組合的轉變。與 2023 年上半年相比，今年迄今為止，團體保險銷售額增加了 13%，個人壽險銷售額增加了 7%。

In Brazil, we continue to expand our third-party distribution and benefit from the high quality of our life planners. This has resulted in a 27% increase in year-to-date sales.

在巴西，我們繼續擴大我們的第三方分銷，並受益於我們高品質的生活規劃師。這使得年初至今的銷售額成長了 27%。

Across each of our businesses, our strategy is underpinned by the continued investment in capabilities and initiatives that translate into future earnings growth. This includes expanding our products and distribution and using artificial intelligence, machine learning and other technology to deliver exceptional sales, service and claims experiences.

在我們的每一項業務中，我們的策略都以對能力和舉措的持續投資為基礎，這些投資將轉化為未來的獲利成長。這包括擴大我們的產品和分銷，並使用人工智慧、機器學習和其他技術來提供卓越的銷售、服務和索賠體驗。

Turning to slide 4. Our disciplined approach to capital deployment supported investments in our businesses while returning over $700 million to shareholders during the quarter.

轉到投影片 4。我們嚴格的資本部署方法支持了我們的業務投資，同時在本季向股東返還了超過 7 億美元。

Turning to slide 5. Our financial strength, diversified business mix and risk and capital management framework supports our growth strategy. Our AA rating reflects our healthy capital position, including more than $4 billion in highly liquid assets at the end of the second quarter, a high-quality, well-diversified investment portfolio and a disciplined approach to asset liability management. We are confident that our financial strength, our business strategy and the evolving opportunities to support our customers around the world put us in a strong position to deliver long-term value to our shareholders.

轉到投影片 5。我們的財務實力、多元化的業務組合以及風險和資本管理框架支持我們的成長策略。我們的 AA 評級反映了我們健康的資本狀況，包括第二季末超過 40 億美元的高流動性資產、高品質、多元化的投資組合以及嚴格的資產負債管理方法。我們相信，我們的財務實力、業務策略以及支持全球客戶的不斷發展的機會使我們處於有利地位，可以為股東創造長期價值。

With that, I will turn it over to Rob for a closer look at our individual business performance.

這樣，我將把它交給 Rob，讓他更仔細地了解我們個人的業務表現。

Thank you, Charlie. I'll provide an overview of our financial results and business performance for our PGIM, US and international businesses. I'll begin on slide 6 with our financial results for the second quarter of 2024.

謝謝你，查理。我將概述我們的 PGIM、美國和國際業務的財務表現和業務績效。我將從第 6 投影片開始介紹我們 2024 年第二季的財務表現。

Our pre-tax adjusted operating income was $1.6 billion or $3.39 per share on an after-tax basis, up 10% from the year ago quarter and 12.5% on a year-to-date basis. These results reflect the execution of our strategy to grow our market-leading businesses.

我們的稅前調整後營業收入為 16 億美元，稅後每股收益為 3.39 美元，比去年同期成長 10%，比年初至今成長 12.5%。這些結果反映了我們發展市場領先業務的策略的執行情況。

Higher spread in fee income was the result of continued strong sales and the benefit of higher interest rates and equity markets. Additionally, expenses were lower and include a reduction in legal reserves. Results for the current quarter also include a modest net favorable impact from our annual assumptions update and other refinements reflecting the benefit of our diversified business mix.

費用收入的較高利差是持續強勁的銷售以及較高的利率和股市的好處的結果。此外，費用也有所下降，其中包括法定儲備金的減少。本季的業績還包括我們的年度假設更新和其他反映我們多元化業務組合優勢的改進所帶來的適度淨有利影響。

Year to date, adjusted operating return on equity was 13.5% and has improved nearly 1.5 percentage points from the prior year. This reflects the strength of our businesses, the benefits from the deliberate actions we've taken to pivot to more capital-efficient products and operating efficiencies we've achieved that support growth.

年初至今，調整後的營運股本回報率為 13.5%，比前一年提高了近 1.5 個百分點。這反映了我們的業務實力、我們為轉向資本效率更高的產品而採取的刻意行動所帶來的好處，以及我們為支持成長而實現的營運效率。

Turning to the operating results from our businesses compared to the year ago quarter. PGIM, our Global Investment Manager had higher asset management fees, driven by favorable investment performance, contributions from the Deerpath Capital acquisition and equity market appreciation. Additionally, higher incentive and transaction fees resulted in an increase in other related revenues. This was partially offset by higher expenses to support business growth.

轉向我們業務與去年同期相比的經營業績。由於良好的投資績效、Deerpath Capital 收購的貢獻以及股市升值，我們的全球投資經理 PGIM 的資產管理費用較高。此外，較高的激勵費和交易費導致其他相關收入增加。這被支持業務成長的支出增加部分抵消。

Earnings growth in our US businesses reflected higher spread income driven by business growth and the benefit of higher interest rates, more favorable underwriting results and lower expenses. In addition, a more favorable relative impact from our annual assumptions update and other refinements was driven by a more favorable retirement strategies update, partially offset by a less favorable update in Individual Life.

我們美國業務的獲利成長反映了業務成長推動的利差收入增加以及更高利率、更有利的承保業績和更低費用的好處。此外，我們的年度假設更新和其他改進帶來了更有利的相對影響，這是由更有利的退休策略更新推動的，部分被個人壽險不太有利的更新所抵消。

This was partially offset by lower legacy traditional variable annuity fee income as we intentionally pivot to less market-sensitive products. Results of our international businesses included an unfavorable relative impact from our annual assumptions update and other refinements, less favorable underwriting results, primarily reflecting policyholder behavior, and lower spread income due to less favorable variable investment income. Results in the quarter also included higher joint venture earnings.

由於我們有意轉向市場敏感度較低的產品，因此傳統可變年金費用收入的減少部分抵消了這種影響。我們的國際業務表現包括年度假設更新和其他改進帶來的不利相對影響、不太有利的承保結果（主要反映了保單持有人的行為）以及由於可變投資收入不太有利而導致的利差收入較低。該季度的業績還包括合資企業獲利的增加。

Turning to slide 7. PGIM, our global investment manager, has diversified capabilities in both public and private asset classes across fixed income, equities and alternatives. PGIM's strong investment performance continues to improve, with 83% of assets under management exceeding their benchmarks over the past year. This has contributed favorably to strong long-term performance with 80% and over 90% of assets under management outperforming their benchmarks over the last 5- and 10-year periods, respectively.

轉到投影片 7。PGIM 是我們的全球投資管理公司，在固定收益、股票和另類資產領域的公共和私人資產類別中擁有多元化的能力。PGIM 強勁的投資績效持續改善，去年管理的資產中有 83% 超過了基準。這對強勁的長期業績做出了積極貢獻，在過去 5 年和 10 年期間，80% 和超過 90% 的管理資產分別優於基準。

PGIM's assets under management increased by 5% to $1.3 trillion from the year ago quarter, driven by market appreciation, investment performance and affiliated net flows. Third-party net outflows in the quarter totaled $9.5 billion. Institutional outflows of $8.9 billion were primarily in fixed income driven by two large clients.

受市場升值、投資績效和附屬淨流量的推動，PGIM 管理的資產較去年同期成長 5%，達到 1.3 兆美元。本季第三方淨流出總額為 95 億美元。89 億美元的機構流出主要是由兩個大客戶驅動的固定收益領域。

Retail outflows of $600 million were driven by sub-advised equity strategies and mutual funds and were partially offset by positive momentum in public fixed income. PGIM third-party flows are episodic due to large single-client transactions. On a year-to-date basis, we generated $17.1 billion of inflows, reflecting the net benefit from large institutional pension clients.

6 億美元的零售流出是由次級顧問股票策略和共同基金推動的，並被公共固定收益的積極勢頭部分抵消。由於單一客戶端交易量較大，PGIM 第三方流量是間歇性的。今年迄今，我們產生了 171 億美元的流入，反映了大型機構退休金客戶的淨收益。

As the investment engine of Prudential, PGIM's capabilities support the success and growth of our US and international businesses in retirement, asset management and insurance. PGIM's asset origination capabilities, investment management expertise and access to institutional and other sources of private capital, including through the recently launched and reinsurer, Prismic, our competitive advantage, helping our businesses bring enhanced solutions and create more value for our customers.

作為保德信的投資引擎，PGIM 的能力支持我們的美國和國際退休金、資產管理和保險業務的成功和成長。PGIM 的資產發起能力、投資管理專業知識以及獲得機構和其他私人資本來源（包括透過最近推出的再保險公司Prismic）的競爭優勢，幫助我們的企業帶來增強的解決方案並為我們的客戶創造更多價值。

Our insurance and retirement businesses, in turn, provide a source of growth for PGIM through affiliated net flows as well as unique access to insurance liabilities. In addition, our diversified PGIM private alternatives platform, which has assets under management of approximately $240 billion, experienced strong private credit origination activity driven by our direct lending businesses, including from our recent acquisition of Deerpath Capital.

反過來，我們的保險和退休業務透過附屬淨流量以及獨特的保險負債管道為 PGIM 提供了成長來源。此外，我們的多元化 PGIM 私人另類投資平台管理著約 2,400 億美元的資產，在我們的直接貸款業務（包括我們最近收購的 Deerpath Capital）的推動下，經歷了強勁的私人信貸發放活動。

Turning to slide 8. Our US businesses produced diversified earnings from fees, net investment spread and underwriting income and benefit from our complementary mix of longevity and mortality businesses. We continue to focus on growing our market-leading businesses by transforming our capabilities to improve customer experiences and expanding our addressable market with new financial solutions leveraging the capabilities across Prudential. Retirement strategies generated strong sales of $7.5 billion in the second quarter across its institutional and individual lines of business.

轉到投影片 8。我們的美國業務透過費用、淨投資利差和承保收入產生了多元化的收入，並從我們的長壽和死亡業務的互補組合中受益。我們繼續專注於發展我們的市場領先業務，透過轉變我們的能力來改善客戶體驗，並利用保誠集團的能力，透過新的金融解決方案擴大我們的目標市場。退休策略在第二季為機構和個人業務帶來了 75 億美元的強勁銷售額。

Institutional Retirement sales of $4 billion included US-funded pension risk transfer transactions of $1.4 billion and longevity risk transfer sales of $1.2 billion. Year to date, Institutional Retirement has generated sales of $15 billion. Individual Retirement posted $3.5 billion in sales, its best quarter of sales in over a decade. Our product pivots have resulted in continued strong sales of FlexGuard and FlexGuard income, and fixed annuity sales have doubled from the prior year. Additionally, we continue to reduce market sensitivity by running off our legacy variable annuities.

40 億美元的機構退休銷售額包括 14 億美元的美國資助退休金風險轉移交易和 12 億美元的長壽風險轉移交易。今年迄今為止，Institutional Retirement 的銷售額已達 150 億美元。個人退休產品銷售額達 35 億美元，是十多年來最好的季度銷售額。我們的產品轉型帶來了 FlexGuard 的持續強勁銷售和 FlexGuard 收入，固定年金銷售額比前一年翻了一番。此外，我們繼續透過淘汰傳統的可變年金來降低市場敏感性。

Group Insurance sales primarily occur in the first quarter of the year based on annual enrollments. On a year-to-date basis, sales increased 13% compared to the prior year, driven by growth in life, disability and supplemental health. We are executing our strategy of both product and client segmentation diversification while leveraging technology to increase operating efficiency and enhance customer experience. These actions to improve profitability and performance resulted in a favorable benefit ratio of 81.1%.

團體保險銷售主要發生在每年第一季，取決於年度投保人數。年初至今，在壽命、殘疾和補充健康成長的推動下，銷售額比前一年增長了 13%。我們正在執行產品和客戶細分多元化的策略，同時利用技術來提高營運效率並增強客戶體驗。這些提高獲利能力和績效的行動帶來了 81.1% 的有利效益率。

In Individual Life, sales increased 3% from the year ago quarter and 7% year to date. These increases include the benefit from our FlexGuard Life product, which reached its highest sales quarter since its launch in 2022 and from our pivot towards more capital-efficient products.

個人壽險業務的銷售額較去年同期成長 3%，今年迄今成長 7%。這些成長包括受益於我們的 FlexGuard Life 產品（該產品達到了自 2022 年推出以來的最高銷售季度）以及我們轉向更具資本效率的產品。

Turning to slide 9. Our international businesses include our Japanese life insurance companies, where we have a differentiated multichannel distribution model as well as other businesses aimed at expanding our presence in targeted high-growth emerging markets. In Japan, we are focused on providing high-quality service and expanding our distribution and product offerings. Our needs-based approach and protection and retirement product focus continue to provide important value to our customers as we expand our product offerings to meet their evolving needs.

轉到投影片 9。我們的國際業務包括我們的日本人人壽保險公司，我們在日本人壽險公司擁有差異化的多通路分銷模式，以及旨在擴大我們在目標高成長新興市場的業務的其他業務。在日本，我們專注於提供高品質的服務並擴大我們的分銷和產品範圍。隨著我們擴大產品範圍以滿足客戶不斷變化的需求，我們以需求為基礎的方法以及對保護和退休產品的關注繼續為我們的客戶提供重要的價值。

In emerging markets, we are focused on creating a selective portfolio of businesses and regions where customers' needs are growing where there are compelling opportunities to build market-leading businesses and where the Prudential Enterprise can add value.

在新興市場，我們專注於創建精選的業務和地區組合，在這些地區和地區，客戶的需求不斷增長，擁有建立市場領先業務的絕佳機會，並且保德信企業可以增加價值。

Sales in our international businesses were up 11% compared to the year ago quarter. Higher sales in Japan are benefiting from recent product launches as we expand our retirement and savings offerings. These new products are gaining traction with customers and represented 20% of the current quarter sales. In addition, emerging market sales were higher, driven by growth in Brazil as we continue to expand third-party distribution and benefit from the strong performance of our world-class life planners.

我們國際業務的銷售額與去年同期相比成長了 11%。隨著我們擴大退休和儲蓄產品範圍，日本的銷售成長得益於最近推出的產品。這些新產品越來越受到顧客的青睞，佔本季銷售額的 20%。此外，在巴西成長的推動下，新興市場的銷售額有所成長，因為我們繼續擴大第三方分銷，並受益於我們世界一流的生活規劃師的強勁表現。

As we look ahead, we are well positioned across our businesses to be a global leader in expanding access to investing, insurance and retirement security. We continue to focus on investing in growth businesses and markets, delivering industry-leading customer experiences and creating the next generation of financial solutions to serve the diverse needs of a broad range of customers.

展望未來，我們的業務處於有利位置，成為擴大投資、保險和退休保障管道的全球領導者。我們持續專注於投資成長型業務和市場，提供業界領先的客戶體驗並創建下一代金融解決方案，以滿足廣大客戶的多樣化需求。

And with that, I'll now hand it over to Yanela.

現在，我將把它交給 Yanela。

Thank you, Rob. I will begin on slide 10, which provides insight into earnings for the third quarter of 2024 relative to our second-quarter results.

謝謝你，羅布。我將從投影片 10 開始，該投影片提供了 2024 年第三季相對於我們第二季業績的收益洞察。

Pre-tax adjusted operating income for the second quarter was $1.6 billion and resulted in earnings per share of $3.39 on an after-tax basis. To get a sense of how our third quarter results might develop, we suggest adjustments for the following items. First, our annual assumption update and other refinements resulted in a net benefit of $6 million in the second quarter. Second, variable investment income was below expectations by $90 million in the second quarter, driven by lower real estate returns.

第二季稅前調整後營業收入為 16 億美元，稅後每股盈餘為 3.39 美元。為了了解我們第三季業績的發展情況，我們建議對以下項目進行調整。首先，我們的年度假設更新和其他改進導致第二季淨收益為 600 萬美元。其次，由於房地產回報率下降，第二季可變投資收入低於預期 9,000 萬美元。

Next, underwriting experience was below expectations by $10 million in the second quarter, and we expect $30 million of favorable seasonality in the third quarter. And last, we include an adjustment of $95 million for expenses and other items. Expenses in the second quarter were lower than expected, reflecting a reduction in legal reserves and the timing of expenses. As a result, we have lowered the full-year 2024 expected loss in Corporate and Other to $1.8 billion.

其次，第二季的承保經驗低於預期 1,000 萬美元，我們預期第三季的有利季節性為 3,000 萬美元。最後，我們對費用和其他項目進行了 9500 萬美元的調整。第二季的支出低於預期，反映出法定準備金的減少和支出時間的安排。因此，我們將 2024 年全年企業及其他業務的預期虧損下調至 18 億美元。

In the third quarter, we expect higher investments in our initiatives to support growth as originally planned. These adjustments combined get us to a baseline of $3.48 per share for third quarter. I will note that if you exclude items specific to the third quarter, earnings per share would be $3.56.

在第三季度，我們預計對我們的計劃的投資將增加，以支持原計劃的成長。這些調整綜合起來使我們第三季的基準值為每股 3.48 美元。我要指出的是，如果排除第三季特定的項目，每股收益將為 3.56 美元。

The key takeaway is that our underlying earnings power increased and reflects our continued investment in the growth of our market-leading businesses and our pivot away from more capital-intensive and lower-growth businesses. While we have provided these items to consider, please note that there may be other factors that affect earnings per share in the third quarter.

關鍵的一點是，我們的潛在獲利能力有所增強，反映出我們對市場領先業務成長的持續投資，以及我們從資本密集和低成長業務的轉向。雖然我們提供了這些需要考慮的項目，但請注意，可能還有其他因素影響第三季的每股盈餘。

Turning to slide 11. Our capital position continues to support our AA financial strength rating. Our regulatory capital ratios are in excess of our AA objectives. Our cash and liquid assets were $4.4 billion within our liquidity target range of $3 billion to $5 billion, and we have substantial off-balance sheet resources. We remain thoughtful in our capital deployment, preserving financial strength and flexibility, investing in our businesses for long-term growth and returning capital to shareholders.

轉到投影片 11。我們的資本狀況繼續支持我們的 AA 財務實力評級。我們的監理資本比率超出了 AA 目標。我們的現金和流動資產為 44 億美元，處於 30 億至 50 億美元的流動性目標範圍內，我們擁有大量表外資源。我們在資本配置方面保持深思熟慮，保持財務實力和靈活性，投資我們的業務以實現長期成長，並向股東返還資本。

Turning to slide 12. And in summary, we are growing our market-leading businesses. We are maintaining a disciplined approach to capital deployment, and our growth is supported by the strength of our balance sheet.

轉到投影片 12。總而言之，我們正在發展市場領先的業務。我們在資本部署方面保持嚴格的方法，我們的成長得到了資產負債表實力的支持。

And with that, we will be happy to take your questions.

因此，我們將很樂意回答您的問題。

(Operator Instructions) Ryan Krueger, KBW.

（操作員說明）Ryan Krueger，KBW。

My first question was on Prismic. Can you give an update on your progress towards additional transactions? And would you anticipate getting another one done before the end of the year?

我的第一個問題是關於 Prismic 的。能否介紹一下額外交易的最新進展？您預計在年底前完成另一項工作嗎？

Ryan, it's Rob. Yeah, we and our Prismic investors share aspirations to grow well beyond the initial $10 billion transaction that we completed relatively recently. We continue to work on a very active pipeline of multiple-insurance transactions. That pipeline includes ongoing balance sheet optimization, flow or new sales solutions across our businesses as well as third-party blocks where we have a particular focus on Japan. We would be disappointed if we've not entered into an additional transaction before year end.

瑞安，我是羅布。是的，我們和我們的 Prismic 投資者都有共同的願望，希望能夠遠遠超出我們最近完成的最初 100 億美元交易。我們持續致力於非常活躍的多種保險交易管道。此管道包括我們業務中持續的資產負債表優化、流程或新的銷售解決方案，以及我們特別關注日本的第三方業務。如果我們在年底前沒有達成額外的交易，我們會感到失望。

And the second one was on -- just hoping you could revisit your earnings sensitivity's short-term rates. And I think in addition to the total sensitivity, can you give some perspective on the different moving parts between some of the businesses?

第二個是──只是希望你能重新審視你的獲利敏感度的短期利率。我認為除了整體敏感度之外，您能否對某些業務之間的不同移動部分給出一些看法？

Ryan, it's Yanela. Yes, with regards to rates, short-term rates, we do not expect much of an impact due to changes in short-term rates. We have cash at the holding company and collateral and individual retirement strategies that earn short-term yields. And this is generally offset by interest rate derivatives where we pay short-term rates and receive fixed and we use this to manage duration across our businesses. So generally, these are all setting.

瑞安，我是亞內拉。是的，關於利率，短期利率，我們預期短期利率的變化不會產生太大影響。我們在控股公司擁有現金、抵押品和個人退休策略，可以賺取短期收益。這通常會被利率衍生性商品所抵消，我們支付短期利率並獲得固定利率，並用它來管理整個業務的久期。所以一般來說這些都是設定的。

Let me also address long-term rates since we've seen some recent movement. With respect to long-term rates, we have benefited from the rise in rates over the past few years, which have been at levels that are significantly higher than over the past decade. And this has increased our portfolio yields in both domestic and international.

我還想談談長期利率，因為我們看到了最近的一些趨勢。就長期利率而言，我們受益於過去幾年利率的上升，其水準明顯高於過去十年。這增加了我們在國內和國際的投資組合收益率。

So high risk for us and it has been a tailwind. If rates were to decline, it would reduce our new money rates, but we do have a healthy spread between our new money rates and portfolio yields. And lastly, I would point out that we have a very disciplined ALM approach, which significantly reduces future spread volatility of the in-force.

對我們來說風險如此之高，這也是一種順風。如果利率下降，我們的新貨幣利率就會降低，但新貨幣利率和投資組合收益率之間確實存在健康的利差。最後，我要指出的是，我們有一個非常嚴格的 ALM 方法，它可以顯著降低有效的未來利差波動性。

Suneet Kamath, Jefferies.

蘇尼特·卡馬斯，杰弗里斯。

I guess last quarter, you guys were pretty optimistic about the industry annuity sales. I think you said over $400 billion. And year to date, that's tracking pretty closely, so that's good. I guess my question is, given the move in rates that we've seen with the 10-year now, somewhere in the 3.8% neighborhood, do you think that will dampen demand for annuity growth? And how are you thinking about pricing in this if this becomes the new rate environment?

我想上個季度，你們對業界年金銷售非常樂觀。我想你說的是超過 4000 億美元。今年迄今為止，這一數字的跟踪非常接近，所以這很好。我想我的問題是，考慮到我們現在所看到的 10 年期利率的變動（在 3.8% 附近），您認為這會抑制年金成長的需求嗎？如果這成為新的利率環境，您如何考慮定價？

So Suneet, it's Caroline, and I'll take your question. So right now, the annuity market continues to be extremely strong as you referenced, with the market on pace to deliver a third straight record year, outpacing last year's run rate by over 20%. It's certainly possible that in a decreasing interest rate environment, we could see some pullback from the record sales levels, particularly in fixed annuities.

Suneet，我是卡洛琳，我來回答你的問題。因此，目前，正如您所提到的那樣，年金市場仍然非常強勁，市場預計將連續第三年創紀錄，比去年的運行速度高出 20% 以上。當然，在利率下降的環境下，我們可能會看到創紀錄的銷售水準出現一些回落，特別是在固定年金方面。

From a Prudential perspective, while we've been very pleased with the growth in our fixed annuity sales, for us, it's really just a piece of the overall portfolio. We have the broadest product portfolio we've ever had with no overconcentration in any single product. In fact, this past quarter, we had record sales in three distinct products, and two of those are in our RILA suite of solutions, which are actually less sensitive to interest rates. And Suneet, this really reflects our very deliberate strategy, which enables us to serve the broadest set of customers across all market conditions.

從保誠的角度來看，雖然我們對固定年金銷售的成長感到非常滿意，但對我們來說，這其實只是整個投資組合的一部分。我們擁有有史以來最廣泛的產品組合，沒有過度集中於任何單一產品。事實上，上個季度，我們三種不同產品的銷售額創下了紀錄，其中兩種產品屬於我們的 RILA 解決方案套件，它們實際上對利率不太敏感。Suneet，這確實反映了我們非常深思熟慮的策略，這使我們能夠在所有市場條件下為最廣泛的客戶群提供服務。

Frankly, we're also very excited about the broader retirement opportunity. We do see strengthening tailwinds from rapid growth in the population of Americans over age 65 as well as increased demand for solutions that protect retirement savings and provide lifetime income. So we believe customer demand for protected income will continue to be the driving force behind growth over the long term, and we're well positioned to meet that demand with our diverse portfolio of solutions and the strength of our brand and distribution.

坦白說，我們也對更廣泛的退休機會感到非常興奮。我們確實看到，65 歲以上美國人人口的快速增長以及對保護退休儲蓄和提供終身收入的解決方案的需求不斷增加，帶來了強勁的推動力。因此，我們相信，從長遠來看，客戶對受保護收入的需求將繼續成為成長背後的驅動力，並且我們有能力透過我們多樣化的解決方案組合以及我們的品牌和分銷實力來滿足這一需求。

And finally, Suneet, you asked a question about pricing. We are also very well positioned to continue with our pricing discipline, which we have the ability to adapt pricing and enter the market with revised pricing in very short order, which enables us to be very nimble with changing markets.

最後，Suneet，您問了一個有關定價的問題。我們也有能力繼續我們的定價原則，我們有能力調整定價並在很短的時間內以修改後的價格進入市場，這使我們能夠非常靈活地應對不斷變化的市場。

Okay. That makes sense. And then, I guess for Rob, on Prismic again. You said that you'd be disappointed if you didn't do something this year. Should we think about the first deal that you do? Should that be on the smaller side as a proof-of-concept deal or is that not the way that you're thinking about it?

好的。這是有道理的。然後，我想羅布會再次在 Prismic 上。你說今年如果不做點什麼，你會感到失望。我們應該考慮一下你做的第一筆交易嗎？作為概念驗證交易，這應該是較小的一面還是這不是您考慮的方式？

So Suneet, it would actually be the second deal. So the first transaction we closed was about $10 billion in reserves, and so, relatively significant in size. For the next transaction, what I would say is that the nature of underlying liabilities is what impacts the sizing of the transaction, and that's going to be dependent upon market sensitivity, hedging and collateral needs.

所以Suneet，這實際上是第二筆交易。因此，我們完成的第一筆交易的儲備金約為 100 億美元，因此規模相對較大。對於下一筆交易，我想說的是，基礎負債的性質會影響交易規模，而這將取決於市場敏感度、對沖和抵押品需求。

So we're not constraining it simply because of appetite or access to capital or other capabilities. It would really just be a function of making sure that as we're constructing the Prismic portfolio and all fits together well.

因此，我們不會因為慾望或獲得資本或其他能力而限制它。這實際上只是確保我們在建立 Prismic 投資組合時確保所有內容都能很好地結合在一起的功能。

And are you leaning one way or the other in terms of the different uses? You've talked about flow, you've talked about your own in-force, you've talked about third party. Is there one way that you're leaning in particular on that?

就不同用途而言，您傾向於其中一種還是另一種方式？你談到了流量，你談到了你自己的力量，你談到了第三方。有沒有一種方法是您特別傾向的？

Well, I would say we -- the continued balance sheet optimization is probably our highest priority, Suneet, and incidentally, the most controllable of the things that we're working on. But both flow and third party are high priorities for us, and they're being actively worked as well.

好吧，我想說的是，Suneet，持續的資產負債表優化可能是我們的首要任務，順便說一句，這也是我們正在做的事情中最可控的。但流程和第三方對我們來說都是重中之重，而且我們也積極開展工作。

Elyse Greenspan, Wells Fargo.

伊麗絲‧格林斯潘，富國銀行。

My first question is on PGIM. I know you guys had called out two large pension outflows in the quarter, but I was hoping to just get more color on trends in flows, both on the institutional and retail side and how you think about the outlook for the balance of the year?

我的第一個問題是關於 PGIM 的。我知道你們已經指出本季有兩次大規模的退休金流出，但我希望能對機構和零售方面的流動趨勢有更多的了解，以及你們如何看待今年剩餘的前景？

Sure. Elyse, it's Andy. I'll take that. So our flows in PGIM have become more variable. This is mostly driven on the institutional side of the business, so let me start there. We're the sixth largest manager of defined benefit assets globally, and we have very large strategic pension clients.

當然。伊麗絲，是安迪。我會接受的。因此，我們在 PGIM 中的流程變得更加多變。這主要是由業務的機構方面驅動的，所以讓我從這裡開始。我們是全球第六大固定收益資產管理公司，並且擁有非常龐大的策略性退休金客戶。

If you look at many of these defined benefit portfolios, as we sit here today, are overfunded and those clients are either derisking or they're exploring PRT. So as a result, we're seeing more than normal institutional money in motion, leading to a variability in our institutional flows.

如果你看看我們今天坐在這裡的許多固定收益投資組合，你會發現資金過剩，而這些客戶要么正在降低風險，要么正在探索 PRT。因此，我們看到比正常機構資金更多的流動，導致我們的機構資金流動發生變化。

Overall, we expect that PGIM will be a beneficiary of that environment, given our world-class fixed income solutions and our leading PRT business. If you take a step back though and look across the year, last quarter, you saw us benefit with noteworthy PRT wins and a large pension mandate inflow. This quarter, we saw fixed income outflows as a few of our clients derisked and moved but the important part is, when you look across the year, our institutional flows are positive year to date at $17 billion.

總體而言，鑑於我們世界一流的固定收益解決方案和領先的 PRT 業務，我們預計 PGIM 將成為該環境的受益者。不過，如果你退後一步，縱觀全年，上個季度，你會看到我們受益於顯著的 PRT 勝利和大量養老金強制流入。本季度，我們看到固定收益流出，因為我們的一些客戶降低了風險並轉移了資金，但重要的是，當你縱觀全年時，我們的機構資金流今年迄今為正值，達到170 億美元。

On the retail side of the business, we have experienced large improvement versus last year. Year to date, our flows are flat, and that is a market improvement. We're starting to see flows back into our fixed income retail products with $1.1 billion in positive inflow this quarter. We believe this is poised to accelerate once clients start to move to $6 trillion that's sitting in money market assets over into longer-term active products.

在零售業務方面，我們與去年相比有了很大的進步。今年迄今為止，我們的流量持平，這是市場的改善。我們開始看到資金回流至我們的固定收益零售產品，本季正流入 11 億美元。我們相信，一旦客戶開始將貨幣市場資產中的 6 兆美元轉向長期活躍產品，這一趨勢將會加速。

And we expect that declining rates are going to be the trigger to that action. So the punchline overall from a flows perspective is we expect that we will remain a net winner over the long term, but you should expect near-term variability. It will continue in this environment.

我們預計利率下降將成為這項行動的觸發因素。因此，從流量角度來看，總體而言，我們預計我們將在長期內保持淨贏家的地位，但您應該預期近期的變化。在這樣的環境下還會繼續下去。

And then, my second question was on the group side. Results there were pretty strong. Just anything you're calling one-off there. And then, how should we think about the benefits ratio trending in that business over the balance of the year?

然後，我的第二個問題是關於集團方面的。那裡的結果相當強勁。就是你所說的一次性的任何東西。然後，我們該如何看待該業務在今年餘下時間的福利比率趨勢？

Sure. Elyse, it's Caroline, and I'll take your question. There's really nothing that's one-off, Elyse, but it's really very much core strength in the business, which was driven by a few different factors. First of all, we continue to see strong life and group disability results driven by favorable mortality and by our focus on effective claims management, which is an area we continue to invest in. We also continue to see strong double-digit growth in our supplemental health business, which is a core component of our diversification strategy.

當然。伊麗絲，我是卡洛琳，我來回答你的問題。Elyse，確實沒有什麼是一次性的，但這確實是業務的核心優勢，這是由幾個不同因素驅動的。首先，我們繼續看到強勁的生命和團體殘疾結果，這是由於良好的死亡率和我們對有效索賠管理的關注所推動的，這是我們繼續投資的領域。我們的補充健康業務也持續保持兩位數的強勁成長，這是我們多元化策略的核心組成部分。

And we've also seen growth in our under 5,000 lives in our association market segments, helping us further broaden our portfolio. So overall, Elyse, the business is growing and it's doing so at attractive margins.

我們也看到協會細分市場中 5,000 歲以下人口的成長，這有助於我們進一步擴大我們的產品組合。總的來說，Elyse 的業務正在成長，而且利潤率頗具吸引力。

In terms of your question on the benefit ratio, we delivered a very strong result coming in at 81%, in line with the year ago quarter and below our target range of 83% to 87%. Given that we have been below our target range for the first half of the year, you can expect for the year, we would be towards the lower end of that target range.

關於您關於福利比率的問題，我們取得了非常強勁的結果，為 81%，與去年同期一致，但低於我們 83% 至 87% 的目標範圍。鑑於我們上半年的目標範圍以下，您可以預期今年我們將接近該目標範圍的下限。

Wesley Carmichael, Autonomous Research.

韋斯利·卡邁克爾，自主研究。

On Individual Life, I was hoping you could touch on the assumption review impact. What drove that unfavorable in the quarter? And do you think there's an ongoing impact to either earnings or cash flow?

關於個人生活，我希望你能談談假設審查的影響。是什麼導致了本季的不利局面？您認為這會對獲利或現金流產生持續影響嗎？

Hi, Wes. This is Yanela. So let me take your question. I mean, to take it a step up, the annual assumption update this quarter had a modest benefit to adjusted operating income, as you saw. And this is a result of our multi-line business mix that generally creates risk diversification and tends to moderate the annual assumption update impact. So the net modest benefit was due to favorable mortality updates for the institutional retirement strategies, partially offset by unfavorable policyholder behavior updates for both individual life and Japan.

嗨，韋斯。這是亞內拉。那麼讓我來回答你的問題。我的意思是，更進一步來說，正如您所看到的，本季的年度假設更新對調整後的營業收入有一定的好處。這是我們多線業務組合的結果，這種組合通常會帶來風險分散，並且往往會緩和年度假設更新的影響。因此，適度淨收益是由於機構退休策略的有利死亡率更新，部分被個人生活和日本不利的投保人行為更新所抵消。

And to your question about what drove the large impact to individual life, the negative impact to individual life was primarily due to lower guaranteed universal life surrender experience post-COVID as individuals retain their life insurance policies at higher levels than previously assumed.

至於你提出的關於是什麼對個人生活產生巨大影響的問題，對個人生活的負面影響主要是由於新冠疫情後萬能壽險退保體驗下降，因為個人保留的人壽保險保單水平高於先前的假設。

And this was based on our examination of updated emerging experience data of our business and information available from a number of industry studies. So that is what drove the assumption update, and we do have a small ongoing impact from the assumption update as well.

這是基於我們對我們業務的最新新興經驗數據的檢查以及從許多行業研究中獲得的資訊。這就是推動假設更新的原因，假設更新也確實對我們產生了小小的持續影響。

Got it. And is that an ongoing impact? Is that an operating earnings impact? Or is there any statutory impact from that?

知道了。這是持續的影響嗎？這對營業收入有影響嗎？或者說這有什麼法律影響嗎？

So there's an ongoing operating income perspective. From a statutory perspective, the assumption update there, we have a process. From a process standpoint, that is done at the end of the year. So that will be reflected in our statutory results at the end of the year. Having said that, any impacts are not expected to be meaningful to our assessment of capital availability, cash flows or our capital deployment plans.

因此，存在持續的營業收入前景。從法定的角度來看，假設更新在那裡，我們有一個過程。從流程的角度來看，這是在年底完成的。因此，這將反映在我們年底的法定業績中。話雖如此，任何影響預計對我們對資本可用性、現金流或資本部署計劃的評估都沒有意義。

No, that's great. And then, maybe my follow up on variable investment income. I think some of your competitors this quarter have talked about an expectation for real estate equity returns to improve in the back half of the year. So just curious if you guys have the same outlook or not.

不，那太好了。然後，也許是我對可變投資收益的後續。我認為本季的一些競爭對手已經談到了今年下半年房地產股本回報率改善的預期。所以只是好奇你們是否有相同的觀點。

It's Rob. I'll take that question. I would say that if we look at the industry from an overall basis, our real estate investment group has a forecast that there will be actually continued valuation declines through the remainder of the year across the industry, those valuation declines though, will be in the low-single digits. So while we think we're close to an inflection point where that could begin to turn around, we're not quite sure we're at the trough of that yet.

是羅布。我來回答這個問題。我想說的是，如果我們從整體上看這個行業，我們的房地產投資團隊預測，整個行業的估值實際上將在今年剩餘時間內持續下降，但這些估值下降將在低個位數。因此，雖然我們認為我們已經接近一個可能開始扭轉局面的拐點，但我們不太確定我們是否已經處於低谷。

Tom Gallagher, Evercore ISI.

湯姆·加拉格爾，Evercore ISI。

Just a follow up on the actuarial review. I think most of the $800 million or so net income release from the review came from RILA. Do you mind just A, is that correct? And B, can you talk about what drove the change? Was that utilization assumption changes? And will that be a GAAP-only impact? Or will there be a statutory impact as well?

只是精算審查的後續行動。我認為審查釋放的 8 億美元左右的淨利潤大部分來自 RILA。你介意只選A嗎，對嗎？B，您能談談是什麼推動了這項改變嗎？利用率假設會改變嗎？這是否僅對 GAAP 產生影響？或也會有法定影響嗎？

Yes, Tom, it's Yanela. So yes, the non-AOI impact was mainly due to RILA and it was really driven by a methodology update to the annuity valuation and this is really to be consistent with industry standards and also more consistent with how we actually manage the product. So it's valuation methodology change, it is GAAP only, so we will not see a comparable statutory impact, and that is just following the normal variable annuity reserving and capital standards.

是的，湯姆，我是亞內拉。所以，是的，非 AOI 影響主要是由於 RILA，它實際上是由年金估值方法更新驅動的，這實際上是為了符合行業標準，也更符合我們實際管理產品的方式。因此，它的估值方法發生了變化，僅是公認會計準則，因此我們不會看到可比較的法定影響，而這只是遵循正常的可變年金準備金和資本標準。

Got you. Okay. And then, my follow up is, can you just comment on what caused some of the weakness in institutional retirement this quarter? Was it spreads, underwriting expenses? And how do you feel about earnings visibility going forward in that business?

明白你了。好的。然後，我的後續問題是，您能否評論一下導致本季度機構退休金疲軟的原因？是點差、承銷費用嗎？您對該業務未來的獲利可見度有何看法？

Yes. So Tom, it's Caroline. So we actually don't see much weakness in the earnings, especially given both reported and core earnings are up this quarter compared to the prior year quarter. If I just take the institutional side of the business for a moment, it does take time to see the impact from our risk transfer transactions materialize in our earnings. So in essence, Tom, sales leads, and then obviously, earnings will follow.

是的。湯姆，這是卡洛琳。因此，我們實際上並沒有看到收益有太大的疲軟，特別是考慮到本季的報告收益和核心收益與去年同期相比都有所增長。如果我只考慮一下業務的機構方面，確實需要時間才能看到我們的風險轉移交易對我們的收益產生的影響。湯姆，從本質上來說，銷售領先，顯然，獲利也會隨之而來。

We had $4 billion in sales this past quarter, and we believe that rapidly growing demand for pension derisking in the US and our international markets will continue to fuel profitable growth. We did see some less favorable underwriting this quarter as well as lower VII on the institutional side.

上個季度我們的銷售額為 40 億美元，我們相信美國和國際市場對退休金去風險的需求快速成長將持續推動獲利成長。本季我們確實看到一些不太有利的承保以及機構方面的 VII 值較低。

And then, on the individual side, Tom, there are two key drivers of our core earnings. First, I would point to the strong sales we're driving through our expanded portfolio, which includes our RILA and our fixed products. And this past quarter, as you heard, was especially strong, our best quarter in over a decade.

然後，就個人而言，湯姆，我們的核心收入有兩個關鍵驅動因素。首先，我要指出的是，我們透過擴大產品組合（包括 RILA 和固定產品）推動了強勁的銷售。正如您所聽到的，上個季度尤其強勁，是我們十多年來最好的季度。

The higher sales volumes across these products will also drive future profitability. But over the near term, those profits are tempered by the higher upfront distribution costs associated with the higher sales levels.

這些產品銷售量的增加也將推動未來的獲利能力。但在短期內，這些利潤受到與較高銷售水準相關的較高前期分銷成本的影響。

And then second, there's the impact from our decision to no longer sell traditional variable annuities with living benefit guarantees. While this business continues to generate strong fee income, it will run off at roughly $3 billion to $4 billion per quarter, offsetting some of the earnings growth from our new business.

其次，我們決定不再銷售具有生活福利保證的傳統可變年金。雖然這項業務繼續產生強勁的費用收入，但每季將流失約 30 億至 40 億美元，抵消了我們新業務的部分獲利成長。

But we see this largely as a transition. Ultimately, we like the business we're putting on and those strong sales are contributing higher quality earnings, but you're still going to see an impact from the intentional runoff of our traditional variable annuity block.

但我們認為這在很大程度上是一個轉變。最終，我們喜歡我們正在進行的業務，這些強勁的銷售正在貢獻更高品質的收入，但您仍然會看到我們傳統可變年金塊的有意徑流的影響。

John Barnidge, Piper Sandler.

約翰·巴尼奇，派珀·桑德勒。

I appreciate the opportunity. Can you talk about growth in the group channel and how much of that is coming from at this point employee growth versus wage, and then adding more coverage?

我很感激這個機會。您能否談談集團管道的成長，以及目前有多少成長來自員工成長與薪資，然後增加更多覆蓋範圍？

Sure, John. It's Caroline. I'll take your question. So the growth in our book continues to be primarily driven by the execution of our diversification strategy, which is focused on growing in the under 5,000 lives market as well as our focus on further diversifying and disability and supplemental health products. We're certainly benefiting from strong employment John, which is driving overall employee and wage growth and will continue to grow organically and in the block.

當然，約翰。是卡羅琳。我來回答你的問題。因此，我們的成長仍然主要是由我們多元化策略的執行所推動的，該策略的重點是 5,000 歲以下的生命市場的成長，以及我們對殘疾和補充健康產品的進一步多元化的關注。我們當然受益於約翰的強勁就業，這正在推動整體員工和薪資成長，並將繼續有機成長。

However, when you look at what is primarily driving our growth, it is more driven by the strong underlying fundamentals and executing on our strategy. So hopefully, that helps you. I would also say one more thing in terms of our strategy. We've also made a lot of progress on diversification in our under 5,000 market, which spreads our premiums out more across the year. So we're continuing to like what we see in our diversification.

然而，當你審視推動我們成長的主要因素時，你會發現它更多是由強勁的基本面和執行我們的策略所驅動的。希望這對您有所幫助。關於我們的策略，我還想再說一件事。我們在 5,000 歲以下市場的多元化方面也取得了很大進展，這使我們的保費在全年範圍內更加分散。因此，我們繼續喜歡我們所看到的多元化。

And my follow-up question is on the comment about building a select portfolio in international markets. I know you're focused on where you want to be. What does the opportunity set look like internationally? And is there an opportunity to accelerate that through M&A?

我的後續問題是關於在國際市場建立精選投資組合的評論。我知道你專注於你想去的地方。國際上的機會是什麼樣的？是否有機會透過併購來加速這一進程？

So John, it's Andy. I'll take the question. Yes. And as you said, our strategy on emerging markets or in international in general, is to accelerate our growth through a select set of emerging markets by extending our leadership position in Latin America, by strengthening our footprint in emerging Asia and in particular in India and Indonesia, and by investing in market leaders in Africa.

約翰，是安迪。我來回答這個問題。是的。正如您所說，我們在新興市場或整個國際上的策略是透過擴大我們在拉丁美洲的領導地位，透過加強我們在新興亞洲特別是印度和印度的足跡，透過選定的一組新興市場加速我們的成長。

I mean I think the important thing here is you're already seeing very, very strong good growth in Brazil that is leading to healthy earnings growth in that block of business. Many of these other markets offer us very good opportunity but they will take time to develop. So this is about the medium and long term as well.

我的意思是，我認為重要的是，您已經看到巴西非常非常強勁的良好成長，這導致該業務領域的獲利健康成長。許多其他市場為我們提供了非常好的機會，但它們需要時間來發展。所以這也是關於中長期的。

As far as M&A, we are absolutely open to opportunistic programmatic M&A to help us accelerate our growth in those markets. But as always, organic growth is going to be job one for us. We're confident that over time, emerging markets will become a bigger part of the Prudential pie.

就併購而言，我們絕對對機會性程序性併購持開放態度，以幫助我們加速在這些市場的成長。但與往常一樣，有機成長將成為我們的首要任務。我們相信，隨著時間的推移，新興市場將成為保德信蛋糕中更大的一部分。

Jimmy Bhullar, JPMorgan.

吉米·布拉爾，摩根大通。

I had a question for Yanela or maybe for Rob, just on capital deployment. Your cash flows and capital levels are obviously pretty strong. Yet buybacks have been fairly modest relative to most of your peers, even as the stock trades at a relatively low multiple. So just wondering if you could talk about your appetite for buybacks versus other uses of capital.

我有一個關於資本部署的問題想問 Yanela 或 Rob。您的現金流和資本水準顯然相當強勁。然而，與大多數同業相比，回購相當溫和，儘管該股的本益比相對較低。因此，我想知道您是否可以談談您對回購與其他資本用途的偏好。

Jimmy, it's Yanela. So Look, we remain well capitalized. You saw PICA RBC ratio in excess of our AA objective of 375%. We are positioned to continue to invest in the growth of our businesses, and you've seen that year to date where we've closed three large PRT transactions exceeding $10 billion in liabilities, and we funded strong growth across all of our businesses. And even with that, we continue to pay dividends out of our insurance subsidiaries and our highly liquid assets increased a bit, as you mentioned.

吉米，我是亞內拉。所以看，我們的資本仍然充足。您看到 PICA RBC 比率超過了我們 375% 的 AA 目標。我們準備好繼續投資於我們業務的成長，您已經看到，今年迄今為止，我們已經完成了三筆負債超過 100 億美元的大型 PRT 交易，並且我們為所有業務的強勁增長提供了資金。即便如此，正如您所提到的，我們繼續從保險子公司支付股息，我們的高流動性資產略有增加。

But we will remain thoughtful in our capital deployment. We will remain focused on preserving financial strength and flexibility, investing in our businesses for long-term growth where we see a lot of opportunities, and then returning capital to shareholders.

但我們在資本配置上會保持深思熟慮。我們將繼續專注於保持財務實力和靈活性，投資於我們看到大量機會的業務以實現長期成長，然後將資本返還給股東。

Okay. And if I could just ask about your views on the sales outlook for the Japanese business, just given the high volatility in the yen, I think that's depressing demand for some ForEx products there. But how are you thinking about your trends in your business in Japan, and just the sales outlook in that market?

好的。如果我可以問一下您對日本業務銷售前景的看法，考慮到日圓的高波動性，我認為這抑制了日本對某些外匯產品的需求。但是您如何看待日本業務的趨勢以及該市場的銷售前景？

Yeah, Jimmy, it's Andy. I'll take the question. Maybe let me just start by saying we're very, very pleased with the sales results that we saw. We experienced strong year over year growth in our Life Planner independent agent and bank channels and sales in Japan were up 10% year over year. That is really flowing from our work to continue to broaden and innovate our product portfolio and enhance the customer experience in our business.

是的，吉米，是安迪。我來回答這個問題。首先我要說的是，我們對所看到的銷售結果非常非常滿意。我們的 Life Planner 獨立代理商和銀行通路較去年同期成長強勁，日本的銷售額較去年同期成長 10%。這確實源自於我們的工作，即繼續擴大和創新我們的產品組合，並增強我們業務中的客戶體驗。

The fact is in that 10% year-over-year up, 20% of our sales this quarter flowed from more recent product introductions, including both life and annuity products, and we've been expanding our yen offerings in addition to our US dollar offerings. Obviously, we see effects from the yen strengthening and weakening. Lately here with the strength we've seen, we think that will be a benefit to our US dollar products as it will make them more affordable for the consumer.

事實上，本季我們的銷售額年增 10%，其中 20% 來自最近推出的產品，包括壽險和年金產品，除了美元之外，我們一直在擴大日圓產品供品。顯然，我們看到了日圓走強和走弱的影響。最近，憑藉我們所看到的實力，我們認為這將對我們的美元產品有利，因為這將使消費者更負擔得起它們。

Japanese consumers are still absolutely interested in taking advantage of the US interest rates. So we're pleased with the yen movement this week. We are pleased with the work that we've done and the results we've shown, and we expect to continue the good sales trend.

日本消費者仍然對利用美國利率絕對感興趣。因此，我們對本週日元走勢感到滿意。我們對所做的工作和所取得的成果感到滿意，並期望繼續保持良好的銷售趨勢。

And is competition in that market fairly rational? Because we've heard from some of your peers that it's a much more competitive market than it used to be a few years ago.

該市場的競爭是否相當合理？因為我們從一些同行那裡聽說，現在的市場比幾年前競爭更加激烈。

Yeah. Jimmy, I'll start by saying all the businesses we compete in are competitive, but I would say, yes, the marketplace is rational. At times, you may see a competitor get aggressive. But overall, we see it as a rational market with a good ability for us to drive and drive profitability. And we're competitively advantaged with broad product portfolio, differentiated distribution and a good brand. So the last thing I always reinforce is that we will be disciplined no matter what the competition does, and make sure that we deliver for the customer and the shareholder.

是的。吉米，我首先要說的是，我們參與競爭的所有業務都具有競爭力，但我想說，是的，市場是理性的。有時，您可能會看到競爭對手變得咄咄逼人。但總體而言，我們認為這是一個理性的市場，具有良好的能力來推動和推動獲利能力。我們的競爭優勢在於廣泛的產品組合、差異化的分銷和良好的品牌。因此，我始終強調的最後一件事是，無論競爭對手做什麼，我們都會遵守紀律，並確保我們為客戶和股東提供服務。

Michael Ward, Citi.

邁克爾·沃德，花旗銀行。

I was wondering if you have any sense on the individual life charge? I was wondering if you have any sense of how that would have looked had you not done the GUL deal? And I guess, I'm curious if these types of reserve actions or assumption updates, does that keep you in the market for further risk transfer opportunities?

我想知道您對個人生活費是否有任何了解？我想知道您是否知道如果您沒有完成 GUL 交易的話，情況會是什麼樣子？我想，我很好奇這些類型的準備金行動或假設更新是否會讓您留在市場上以獲得進一步的風險轉移機會？

So Mike, it's Yanela. Let me take your question. So obviously, we executed on the transaction earlier this year. We don't have a sense of what the impact would have been. So that said, in terms of further derisking transactions, we always are looking at options and opportunities to the extent they are available.

麥克，這是亞內拉。讓我回答你的問題。顯然，我們在今年早些時候執行了這筆交易。我們不知道會產生什麼影響。也就是說，就進一步降低交易風險而言，我們始終在盡可能地尋找選擇和機會。

Okay. And then, I noticed the disclosure for PGIM. I think part of the outflow or the reduction in AUM was that you moved the Quant funds to run off. I was wondering if you could expand on that? And if that contributed to the investment performance in the quarter pressure?

好的。然後，我注意到 PGIM 的揭露。我認為資金流出或資產管理規模減少的部分原因是你將量化基金轉移了。我想知道你是否可以對此進行擴展？這是否造成了本季投資績效的壓力？

So it's Andy. I'll take the question. I'll take that in two parts. First, the Quant manager you're referring to is not a material part of our business. It had less than $1 billion in assets under management and it's a subcomponent on the quantitative equity side that we're exploring strategically what we want to do with the capability.

所以是安迪。我來回答這個問題。我將把它分成兩部分。首先，你所指的量化經理並不是我們業務的重要組成部分。它管理的資產不到 10 億美元，它是量化股權方面的一個子組成部分，我們正在策略性地探索我們想要利用該功能做什麼。

But as far as -- you referenced the investment performance, we are actually quite pleased with our investment performance in the business. Obviously, that is job one. It's the most critical ingredient. And if you look at our short-term and long-term results, they have been very, very strong, and we remain confident in our ability to continue that track. But as far as that block of business, it's small and not material to the overall business.

但就您提到的投資績效而言，我們實際上對該業務的投資績效非常滿意。顯然，這是工作之一。這是最關鍵的成分。如果你看看我們的短期和長期業績，你會發現它們非常非常強勁，我們對延續這一趨勢的能力充滿信心。但就該業務而言，它很小，而且對整體業務來說並不重要。

We have reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments.

我們的問答環節已經結束。我想重新發言以徵求進一步的意見或結束意見。

Sure. This is Charlie. Let me make an observation, if I may, before the closing comments and that we are experiencing very turbulent times right now, obviously. And this is exactly when clients need us the most. And we've seen that in the past when clients turned to us during these kind of volatile times, such as the great financial crisis and others that we've all been through.

當然。這是查理。如果可以的話，讓我在結束發言之前發表評論，顯然我們現在正在經歷非常動蕩的時期。而這正是客戶最需要我們的時候。我們過去已經看到，當客戶在這種動盪時期向我們求助時，例如偉大的金融危機和我們都經歷過的其他危機。

And what we've observed is that we've been a net beneficiary in these turbulent times as there is a real flight to quality, which we define as having the financial strength, the strength of brand and the strength of distribution so that clients can meet us when, where and how they want. Now, obviously, past is a prologue, but I'll make the following observation.

我們觀察到，在這個動盪的時期，我們一直是淨受益者，因為人們真正追求質量，我們將質量定義為擁有財務實力、品牌實力和分銷實力，以便客戶能夠在他們想要的時間、地點和方式與我們見面。現在，顯然，過去是序幕，但我將做出以下觀察。

And that is that we have exactly the capabilities that clients need in terms of investing, insurance and retirement security and that we will be laser-focused during these times in helping them as they map through this volatility. So we'll continue to focus on our clients, and we'll continue to deliver sustainable value to all our stakeholders as we go forward.

也就是說，我們完全具備客戶在投資、保險和退休保障方面所需的能力，並且我們將在這段期間集中精力幫助他們應對這種波動。因此，我們將繼續關注客戶，並在前進的過程中繼續為所有利害關係人提供可持續的價值。

So thanks and have an enjoyable weekend.

謝謝，祝週末愉快。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。