Catastrophe losses were $99 million, slightly higher than the prior year's $90 million, but the impact on the combined ratio remained flat.
Financial leverage remained low at 23.4%, and after-tax unrealized investment losses improved by $120 million to $249 million.
Net income per diluted share increased 8.7% year-over-year to $1.00 or $401 million, with an annualized return on beginning of year equity of 19.1%.
Net premiums earned reached a quarterly record of $3.1 billion, and net premiums written hit a record $3.4 billion, with growth across all lines and segments.
Operating earnings were $420 million or $1.05 per share, yielding a 20% annualized return on beginning of year equity, excluding after-tax foreign currency gains and losses.
Ordinary and special dividends totaled $224 million, with book value per share growth before dividends at 6.8% for the quarter and 14.3% year-to-date.
Record net investment income of $379 million was driven by growth in invested assets and higher new money rates on fixed maturity securities, with a book yield increase to 4.7%.
Stockholders' equity increased by over $380 million or 4.3% to a record $9.3 billion.
The accident year combined ratio before catastrophe losses was 88.4%, with a loss ratio excluding cats of 59.9% and an expense ratio of 28.5%.
The effective tax rate was 23.2%, above the U.S. statutory rate due to foreign and state taxes.
Alternative investment income was $60 million below expectations due to lower private equity and real estate returns and a $50 million unfavorable impact from the annual assumption update process.
Capital position remains strong with cash and liquid assets at $3.9 billion, above the $3 billion minimum liquidity target.
Group insurance had one of its best earnings quarters recently with strong underwriting results and a benefit ratio improved to 80.9%.
Individual Life sales grew 10% year-over-year with improved earnings results.
Institutional Retirement delivered $9 billion in sales, including robust Longevity Risk Transfer transactions.
International businesses sales were up 4%, driven by retirement and savings products in Japan despite surrender headwinds.
PGIM's assets under management increased by 8% to $1.4 trillion, with total net flows of $400 million including $2.6 billion institutional inflows and $2.8 billion retail outflows.
Pretax adjusted operating income was $1.7 billion or $3.58 per share, up 9% from the prior year quarter.
Dafinchi