For the first half of 2013, after-tax adjusted operating income for the Financial Services Businesses amounted to $2.172 billion ($4.59 per Common share) compared to $1.415 billion ($3.00 per Common share) for the first half of 2012. The first half 2013 net loss for the Financial Services Businesses attributable to Prudential Financial, Inc. amounted to $1.245 billion ($2.68 per Common share) compared to net income of $1.269 billion ($2.69 per Common share) for the first half of 2012.
The Company acquired The Hartford’s individual life insurance business through a reinsurance transaction on January 2, 2013. Results of the Financial Services Businesses include the results of this business from the date of acquisition.
As a result of the sale, on July 1, 2013, of the Company’s wealth management solutions operation, for which results were previously reported within the Asset Management segment, results for this operation have been classified as “divested businesses” and excluded from adjusted operating income for all periods presented.
“We are pleased to report strong results for the second quarter and first half of the year, driven by solid earnings growth in each of our Divisions. In the U.S., our market-leading pension risk transfer transactions late last year contributed to record-high earnings for the quarter in the Retirement business. We are continuing to benefit from the quality book of business, talented staff, and expanded distribution that came to us with our acquisition of The Hartford’s individual life insurance business in January, with integration well on track. Our International Insurance business continues to perform well, building on a sustained track record of success based on delivering protection and retirement solutions tailored to clients’ financial security needs over a lifetime,” said Chairman and Chief Executive Officer John Strangfeld.Adjusted operating income is not calculated under generally accepted accounting principles (GAAP). Information regarding adjusted operating income, a non-GAAP measure, is discussed later in this press release under “Forward-Looking Statements and Non-GAAP Measures,” and a reconciliation of adjusted operating income to the most comparable GAAP measure is provided in the tables that accompany this release.