Prudential Profit Up, But Takes List of Charges
Prudential Financial, the second-largest life insurer in the United States, Wednesday reported a larger quarterly profit as revenue grew and substantial net investment gains.
The company also took a long list of charges in the quarter, and adjusted earnings missed expectations.
Prudential reported a net profit of $1.52 billion, or $3.06 per share, compared with a rpofit of $1.17 billion, or $2.46 per share, a year earlier.
On an adjusted operating basis, the company earned $1.07 per share. Analysts polled by Thomson Reuters I/B/E/S on average expected earnings of $1.54 per share. Their estimates have come down by about 10 cents in the last month.
Prudential said premium and fee revenue and investment income rose sharply, and it recorded $1.62 billion in net realized investment gains, primarily on changes in derivatives and the strengthening of the yen.
But it also took nearly $500 million in charges in the quarter, for a variety of items, primarily adding to the reserves in its annuity business for guaranteed benefits.
Prudential shares fell 2.6 percent in after-hours trading. (Reporting by Ben Berkowitz)