Prudential Financial
Q2 2023 Earnings Call
Aug 02, 2023, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by and welcome to Prudential's quarterly earnings conference call. At this time, all participants have been placed in a listen-only mode. Later, we'll conduct a question-and-answer session. Instructions will be given at that time.
[Operator instructions] As a reminder, today's call is being recorded. I will now turn the call over to Mr. Bob McLaughlin. Please go ahead.
Bob McLaughlin -- Vice President, Investor Relations
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 international businesses and PGIM, our global investment manager; Caroline Feeney, head of U.S. businesses; Ken Tanji, chief financial officer; and Rob Axel, comptroller 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 make today. In addition, this presentation may include references to non-GAAP measures. For a reconciliation of such measures to the comparable GAAP measure 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.
And now, I'll turn it over to Charlie.
Charlie Lowrey -- Chairman and Chief Executive Officer
Thank you, Bob, and thanks to everyone for joining us today. Our second quarter results reflect continued momentum across our businesses, including the fourth consecutive quarter of underlying earnings growth and record operating earnings for group insurance. We continue to execute on our strategy by reducing market sensitivity and increasing our capital flexibility, enhancing our capabilities, and optimizing operating efficiency to support long-term growth. Our strategic progress and financial strength position us well to navigate the current macroeconomic environment and maintain our disciplined approach to capital deployment. Turning to Slide 3.
I'll start this morning by noting two significant milestones demonstrating how we are reducing market sensitivity and increasing our capital flexibility. During the second quarter, we completed the reinsurance transaction for a $10 billion block of traditional variable annuities and received proceeds of $650 million. With this transaction, I'm pleased that we have achieved our objective of lowering the proportion of traditional variable annuities while continuing our progress in pivoting to less market-sensitive and higher-growth products. Additionally, last week, we announced another transaction to Reinsurer a $12.5 billion block of guaranteed universal life policies, which will be accretive to earnings. We expect to receive approximately $450 million of proceeds when the transaction closes, which is expected to be in the fourth quarter of this year. We also continue to deliver on our vision to increase access to investing, insurance, and retirement security by enhancing our capabilities and customer experiences and by expanding our distribution channels and products to more people around the world.