Prudential's earnings have continued to climb over the past year, usually led by stronger results from its U.S. retirement and investment-management business.
In the latest quarter, earnings in the U.S. retirement segment reported adjusted operating earnings growth of 16%, while Prudential's individual-annuities business saw its profit rise 54%. The asset-management unit reported profit fell 21% amid lower contribution from the segment's incentive, transaction, strategic investing and commercial mortgage activities, as well as higher expenses.
Overall, Prudential's financial-services business reported a loss of $988 million, or $2.09 a share, compared with a year-earlier profit of $539 million, or $1.10 a share. The latest period included $1.84 billion of net realized investment losses and charges including the $1.49 billion currency related impact.
The most recent results included the impact of divested businesses and other special items. They excluded Prudential's closed block of business, representing life-insurance and annuity policies offered when Prudential was owned by its policyholders.
Adjusted operating income, which excludes one-time items and some investment results, fell to $1.56 a share from $1.62.
Total financial services revenue increased 16% to $10.65 billion. Analysts polled by Thomson Reuters most recently projected earnings of $1.71 a share on revenue of $10.48 billion.