Prudential Financial, Inc. (NYSE:PRU) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 11:00 am ET

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Prudential Financial, Inc. (NYSE:PRU) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Prudential Quarterly Earnings Conference Call. [Operator Instructions]

I'll turn the call now over to Mr. Darin Arita. Please go ahead, sir.

Executive
Darin Arita

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 US Businesses; Scott Sleyster, Head of International Businesses; Ken Tanji, Chief Financial Officer; and Rob Axel, Controller and Principal Accounting Officer. We will start with prepared comments by Charlie, Rob and Ken, and then we will take your questions.

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

With that, I'll hand it over to Charlie.

Executive
Charles F. Lowrey

Thank you, Darin. Good morning, everyone and thank you for joining us today. I'll start by saying we hope that you, your families and colleagues remain safe and healthy during these extraordinary times. The events of the past several months have created unforeseen new difficulties for people around the world, while further exposing the deep-seated problem of inequity in our society. It's in times like these that we believe our Company's purpose of solving the financial challenges of our changing world and standing by our employees, customers and communities is most important.

After transitioning over 95% of our US employees and most of our international employees to remote work in March, we continue to seamlessly serve customers, while the vast majority of our employees around the world continue to work in that fashion. This allows us to exercise utmost caution as we evaluate how and when to return to the workplace. In the meantime, I am so proud of our people and how they continue to focus on meeting the evolving needs of our customers, many of whom face new challenges related to the COVID-19 pandemic and its economic impact. We'll continue to innovate the ways we serve our customers during and after the pandemic.

During the second quarter, we maintained a clear focus on executing against our 2020 initiatives despite the challenging macroeconomic backdrop by delivering on progress on our cost savings targets, aggressively repricing and pivoting products to mitigate the impact of low rates on our performance and rotating our international earnings mix. We're also focused on identifying opportunities for further action, particularly as we look to continue to reduce our sensitivity to markets. And we're exploring the potential to generate additional cost savings on top of our existing 2020 targets.

Throughout this period, we benefited from the strength of our rock-solid balance sheet,