Prudential Financial Inc. 's ( PRU ) adjusted
operating earnings for the first quarter of 2013 came in at $2.28
per share, higher than the Zacks Consensus Estimate of $1.89.
Results also exceeded the year-ago earnings of $1.61 per
share.AXIS CAP HLDGS (AXS): Free Stock Analysis
ReportHARTFORD FIN SV (HIG): Free Stock Analysis
ReportMONTPELIER RE (MRH): Free Stock Analysis ReportPRUDENTIAL FINL (PRU): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment
Including realized investment losses, net, and related charges and
adjustments of $6.37, investment gains on trading account assets
supporting insurance liabilities, net, of 20 cents, change in
experience-rated contract holder liabilities due to asset value
changes of 30 cents, income from divested business of 7 cents and
difference in earnings allocated to participating unvested
share-based payment awards of 2 cents, Prudential reported net loss
of $1.55 per share in the first quarter of 2013. This was narrower
than the prior-year loss of $2.03.
Quarterly Operational Update
Total revenue reported by Prudential was $11.8 billion, up 12.8%
year over year, attributable to higher premiums (up 5.8% year over
year), policy charges and fee income (up 32.2% year over year), net
investment income (up 12.8% year over year), and asset management
fees, commissions and other income (up 34.4% year over year).
However, results were below the Zacks Consensus Estimate of $12.5
Total benefits and expenses were $10.4 billion in the quarter, up
9.6% year over year. Higher insurance and annuity benefits (up
15.5%), interest credited to policyholders' account balances (up
1.9%), interest expense (up 6.2%) and other expenses (up 0.7%) led
to the upside.
Quarterly Segment Update
The U.S. Retirement Solutions and Investment Management
division , which houses Individual Annuities, Retirement,
and Asset Management, represents approximately 35.6% of
Prudential's total revenue. The segment reported adjusted operating
income of $775 million, up 9.9% year over year.
Adjusted operating income at the U.S. Individual Life and
Group Insurance division increased 102.8% year over year
to $146 million.
The International Insurance division 's adjusted
operating income increased 46.9% year over year to $877 million,
attributable to higher contribution from both Gibraltar Life and
Life Planners insurance operations.
The Corporate and Other operations ' adjusted
loss was $314 million in the first quarter of 2013 narrower than
the loss of $326 million the year-ago quarter.
Prudential's Assets under management increased
0.1% to $1.061 trillion as of Mar 31, 2013 from $1.060 trillion at
Dec 31, 2012.
Prudential's Closed Block Business posted pretax
operating income of $19 million, down 36.7% year over year.
As of Mar 31, 2013 Prudential had assets under management and
administration worth $1.2 trillion, up 15.2% year over year.
Adjusted book value per share was $55.94, down 3.3% from $57.86 at
year end 2012.
In Jan 2013, Prudential acquired the individual life insurance
business of The Hartford Financial Services Group
Inc. ( HIG
) for $615 million through a reinsurance transaction.
Performance of Other Stocks
AXIS Capital Holdings Limited ( AXS ) reported
first-quarter 2013 net operating income of $1.92 per share, which
breezed past the Zacks Consensus Estimate of $1.19. Earnings surged
79% year over year. Net operating income of $227 million improved
nearly 70% year over year.
Montpelier Re Holdings Ltd. ( MRH ) reported
first-quarter 2013 operating income of $1.18 per share, better than
the Zacks Consensus Estimate of 89 cents. However, earnings were
4.1% lower than $1.23 per share in the year-ago quarter.
Prudential's stock carries a Zacks Rank #2 (Buy).