The segment’s Gibraltar Life and Other operations reported adjusted operating income of $315 million for the current quarter, compared to $202 million in the year-ago quarter. Results for the current quarter reflect absorption of approximately $10 million of integration costs related to the Star and Edison businesses acquired on February 1, 2011, while results for the year-ago quarter include $94 million of such costs. Excluding these integration costs, adjusted operating income increased $29 million from the year-ago quarter. This increase reflected approximately $50 million of cost savings resulting from business integration synergies compared to approximately $10 million in the year-ago quarter. The benefit to results from continued business growth was more than offset by a less favorable level of policy benefits and higher current quarter expenses including costs associated with technology enhancements. Current quarter results also benefited $16 million in comparison to the year-ago quarter from foreign currency exchange rates including the impact of the Company’s currency hedging programs.Corporate and Other operations resulted in a loss, on an adjusted operating income basis, of $371 million in the fourth quarter of 2012, compared to a loss of $285 million in the year-ago quarter. Current quarter results include a charge of $54 million to increase recorded liabilities for certain employee benefits, reflecting the completion of a review, and a charge of $15 million to write off bond issuance costs on debt securities redeemed prior to maturity. Excluding these charges, the loss from Corporate and Other operations increased $17 million from the year-ago quarter. This increase was primarily driven by higher interest expense, net of investment income, reflecting a greater level of capital debt in the current quarter.
Prudential Financial, Inc. Announces 2012 Results
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