The segment’s Gibraltar Life and Other operations reported adjusted operating income of $482 million for the current quarter, compared to $304 million in the year-ago quarter. Results for the current quarter reflect absorption of $6 million of integration costs related to the Star and Edison businesses acquired on February 1, 2011, while results for the year-ago quarter include $38 million of such costs. Excluding these integration costs, adjusted operating income increased $146 million from the year-ago quarter. This increase reflected an approximately $80 million greater contribution from investment results, about half of which came from non-coupon asset classes primarily driven by favorable market performance, and approximately $25 million from a greater level of policy surrenders, net of less favorable mortality experience. Current quarter results also benefited from continued business growth, and from approximately $55 million of cost savings resulting from business integration synergies compared to approximately $40 million in the year-ago quarter. Current quarter results also benefited $11 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 $347 million in the second quarter of 2013, compared to a loss of $225 million in the year-ago quarter. Current quarter results include a charge of $16 million to write off bond issuance costs on debt securities redeemed prior to maturity. Excluding this charge, the loss from Corporate and Other operations increased $106 million in comparison to the year-ago quarter, reflecting higher expenses and greater interest expense, net of investment income.
Prudential Financial, Inc. Announces Second Quarter 2013 Results
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