Prudential faces risks from investment losses due to credit quality deterioration, counterparty defaults, and fluctuating interest rates, equity prices, and foreign exchange rates. Insurance product losses are possible if mortality, morbidity, or policyholder behavior differs from expectations. Liquidity issues could arise from derivative collateral, asset/liability mismatches, or unexpected cash demands. Regulatory changes and legal actions also pose risks. The company also faces risks from technological changes, intellectual property disputes, and competition.

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Prudential anticipates operating efficiencies from restructuring, enabling reinvestment for capability building and competitiveness. Higher reinvestment yields are expected to offset current portfolio yields. New reinsurance agreements and investments in reinsurance companies offer increased capacity and potential for growth. The company also benefits from a diversified product portfolio and a large distribution network.

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