Low Interest Rates Are a Headwind for Prudential but Higher Markets Boosting PGIM

Prudential Financial, like other life insurers, is operationally leveraged to capital markets. Low interest rates have been an ongoing headwind in recent years, and became a greater headwind amid COVID-19. It’s unlikely that interest rates return to historical levels and thus we expect Prudential to continue to face this headwind for the foreseeable future.