Filed Under:Life Insurance, Life Products

Prudential Financial posts loss in fourth quarter

Prudential Financial Inc. closed out the fourth quarter of 2012 with a net loss. And earnings for the full year, though positive, were down significantly from the company’s 2011 results.

The financial services businesses attributable to Prudential Financial, Newark, N.J. (NYSE: PRU), recorded a net loss of $214 million in the fourth quarter ended December 31, down from the $512 in net income posted in the fourth quarter of 2011. For all of 2012, Prudential’s net income was $428 million, down from the $3.4 billion recorded in 2011, an 88 percent decline.

Prudential’s fourth quarter operating results, though also down relative to 2011, were more positive. After-tax adjusted operating income of the financial services businesses totaled $798 million, off from the $855 billion posted in 2011. For the year, Prudential yielded $2.96 billion ($6.27 per common share) in after-tax adjusted operating income, up four percent $2.85 billion ($5.83 per common share) recorded in 2011.

Revenue attributable to the financial services business in the fourth quarter totaled $46.14 billion, up 355 percent from the $10.14 billion posted during the year-ago period. For the year, revenue totaled $81.13 billion, a 108 percent rise over the $38.93 billion recorded in 2011.

In a press statement, Prudential Financial Chairman and CEO John Strangfeld emphasized the positive, noting the company’s “progress” toward achieving long-term objectives. Among the milestones: Prudential now has $1 trillion of assets under management, more than $400 billion of account values in its retirement and annuities businesses and annualized new business premiums of over $4 billion in international insurance.

Among other highlights from Prudential’s year-end results:

The U.S. Retirement Solutions and Investment Management division reported adjusted operating income of $668 million for the fourth quarter of 2012, compared to $769 million in the year-ago quarter.

● The individual annuities segment reported adjusted operating income of $304 million in the current quarter, compared to $373 million in the year-ago quarter.

● The U.S. Individual Life and Group Insurance division reported adjusted operating income of $87 million for the fourth quarter of 2012, compared to $180 million in the year-ago quarter.

The individual life segment reported adjusted operating income of $99 million for the current quarter, compared to $138 million in the year-ago quarter.

● The international insurance segment reported adjusted operating income of $647 million for the fourth quarter of 2012, compared to $502 million in the year-ago quarter.

● Adjusted operating income of the segment’s Life Planner insurance operations totaled $332 million for the current quarter, compared to $300 million in the year-ago quarter.

 

 

 

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