This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Prudential Financial, Inc. Announces Second Quarter 2013 Results

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.

Assets under management amounted to $1.044 trillion at June 30, 2013, compared to $1.060 trillion at December 31, 2012 and $961 billion at June 30, 2012.

The net loss of the Financial Services Businesses attributable to Prudential Financial, Inc. amounted to $524 million for the second quarter of 2013, compared to net income of $2.229 billion in the year-ago quarter.

The current quarter net loss includes $2.230 billion of pre-tax net realized investment losses and related charges and adjustments. The foregoing net loss includes pre-tax losses of $1.560 billion representing net changes in value relating to foreign currency exchange rates primarily resulting from changes in value of the Japanese yen in relation to other currencies. These currency-driven value changes were largely offset by corresponding adjustments to accumulated other comprehensive income which are not reflected in net income or loss. Pre-tax net realized investment losses for the current quarter also include net losses of $953 million from changes in market value of derivatives primarily related to the Company’s investment duration management programs. In addition, current quarter pre-tax net realized investment losses include net losses of $124 million from products that contain embedded derivatives and associated derivative portfolios that are part of a hedging program related to the risks of these products as well as mark to market of derivatives under a capital hedge program. Net realized investment losses also reflect losses from impairments and sales of credit-impaired investments amounting to $34 million. The foregoing losses were partly offset by net gains from general portfolio activities.

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,688.32 -41.79 -0.24%
S&P 500 2,071.08 -5.70 -0.27%
NASDAQ 4,994.11 -15.1040 -0.30%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs