Prudential Financial profit rises as life insurance offsets annuities weakness

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CORRECTED-Prudential Financial profit rises as life insurance offsets annuities weakness

By Suzanne Barlyn

Nov 7 (Reuters) - Prudential Financial Inc on Wednesday reported a 1.74 percent rise in quarterly profit from the year-ago period as profits in its life insurance units offset weaker results in its annuities business.

Prudential, the largest U.S. insurer by assets, said it earned $1.35 billion, or $3.15 per share, in adjusted operating profit after-tax for the third quarter, up from $1.32 billion or $3.01 per share, a year earlier.

Prudential said adjusted operating income at its individual annuities unit fell 21.3 percent to $454 million partly because of higher costs for hedging against risk and higher distribution costs.

An annuity is an insurance contract that allows consumers to save tax-deferred for retirement and generate steady income. Annuities contributed, on average, 25 percent of Newark, New Jersey-based Prudential's overall adjusted operating income during the past 12 months.

Adjusted operating income for PGIM, Prudential's asset management arm, declined 11.2 percent to $230 million from $259 million a year earlier, partly because of higher expenses, the company said.

PGIM managed $1.175 trillion in assets as of September 30, up 4 percent from the year ago quarter.

Prudential's U.S. individual life insurance unit reported a 13 percent increase in adjusted operating income, to $170 million, the company said.

The company's Life Planner unit, which distributes life insurance and retirement products to customers in Japan, Korea and other countries reported a 20.4 percent increase in adjusted operating income to $449 million.

Prudential Financial's stock fell 2.67 percent to $98.00 in after-hours trading on Wednesday.

This article appears in: Fundamental Analysis , World Markets , Stocks , Insurance , Earnings
Referenced Symbols: PRU

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