Post Earnings Coverage as Prudential’s Adjusted Operating Income Jumped 28%

Upcoming AWS Coverage on Primerica Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Prudential Financial, Inc. (NYSE: PRU). The Company reported its first quarter fiscal 2017 financial results on May 3, 2017. The Life Insurance provider Company surpassed earnings expectations. Register with us now for your free membership at:

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One of Prudential Financial’s competitors within the Life Insurance space, Primerica, Inc. (NYSE: PRI), reported on May 10, 2017, its financial results for the quarter ended March 31, 2017. AWS will be initiating a research report on Primerica in the coming days.

Today, AWS is promoting its earnings coverage on PRU; touching on PRI. Get our free coverage by signing up to:

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Earnings Reviewed

Net income attributable to Prudential was $1.37 billion, or $3.09 per common share, for Q1 2017 compared to $1.34 billion, or $2.93 per common share, for Q1 2016. The Company’s after-tax adjusted operating income was $1.24 billion, or $2.79 per common share, for the reported quarter compared to $997 million, or $2.18 per common share, in the prior year’s same quarter. The Company’s earnings numbers exceeded analysts’ consensus of $2.64 per share

Operation Results

Prudential’s US Retirement Solutions and Investment Management division reported adjusted operating income of $1.06 billion for Q1 2017 compared to $712 million in Q1 2016. The segment’s Individual Annuities division reported adjusted operating income of $468 million in the reported quarter compared to $328 million in the year-ago same quarter.

For Q1 2017, the Retirement segment reported adjusted operating income of $397 million compared to $219 million in Q1 2016. This increase reflected greater contributions from net investment results and case experience, as well as higher fee income, driven by growth in average account values.

The unit’s Asset Management segment reported adjusted operating income of $196 million for Q1 2017 compared to $165 million in Q1 2016. The increase was driven by higher asset management fees reflecting growth in fixed income assets under management and fee rate modifications within certain real estate funds. In addition, results reflected a $7 million higher contribution from the segment’s incentive, transaction, strategic investing, and commercial mortgage activities, which amounted to $29 million for the reported quarter.

Prudential’s US Individual Life and Group Insurance division reported adjusted operating income of $152 million for Q1 2017 compared to $146 million in Q1 2016. The Individual Life segment reported adjusted operating income of $118 million for the reported quarter compared to $120 million in the prior year’s corresponding quarter. The decrease reflected higher expenses and more unfavorable claims experience, partly offset by a greater contribution from net investment results.

The segment’s Group Insurance department posted adjusted operating income of $34 million in Q1 2017 compared to $26 million in Q1 2016. The increase reflected a greater contribution from net investment results, partly offset by less favorable underwriting results and higher expenses.

For Q1 2017, Prudential’s International Insurance segment reported adjusted operating income of $799 million compared to $779 million in Q1 2016. Adjusted operating income of the segment’s Life Planner operations was $408 million for the reported quarter compared to $410 million in the prior year’s same quarter. Foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $13 million in comparison to the year-ago similar quarter. Excluding this impact, results increased $11 million from the year-ago same quarter.

In Q1 2017, adjusted operating income of the segment’s Gibraltar Life and Other operations was $391 million, higher compared to $369 million in the prior year’s corresponding quarter. Foreign currency exchange rates, including the impact of the Company’s currency hedging programs, had an unfavorable impact of $2 million in comparison to the year-ago same quarter. Excluding this impact, results increased $24 million from the year-ago comparable quarter.

Asset under Management

As of March 31, 2017, Prudential’s Assets under management amounted to $1.30 trillion compared to $1.26 trillion at December 31, 2016.

Excluding holdings of the Closed Block division, the Company’s gross unrealized losses on general account fixed maturity investments at March 31, 2017, amounted to $3.55 billion, including $3.287 billion on high and highest quality securities based on NAIC or equivalent ratings, and amounted to $3.81 billion at December 31, 2016. Net unrealized gains on these investments amounted to $26.82 billion as on March 31, 2017, compared to $27.59 billion at December 31, 2016.

Dividend Declaration

On May 09, 2017, Prudential announced the declaration of a quarterly dividend of $0.75 per share of Common Stock, payable on June 15, 2017, to shareholders of record at the close of business on May 23, 2017.

Stock Performance

On Friday, May 19, 2017, Prudential Financial’s share price finished the trading session at $103.99, marginally up by 0.52%. A total volume of 2.45 million shares exchanged hands, which was higher than the 3 months average volume of 1.89 million shares. The stock has surged 7.98% and 38.01% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 0.61%. The stock is trading at a PE ratio of 10.57 and has a dividend yield of 2.88%.

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