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Prudential Financial (PRU) Q4 Earnings Beat, Improve Y/Y

Prudential Financial, Inc.PRU reported fourth-quarter 2016 operating income of $2.46 per share that beat the Zacks Consensus Estimate by 6.5%. Earnings also improved 26.8% year over year.

Including the impact of one-time items, net income was 65 cents per share, down 59.4% year over year.

Total revenue inched up 1.3% year over year to $13.4 billion due to 0.9% growth in policy charges and fee income, 11.3% increase in net investment income, and 1.9% rise in asset management fees, commissions and other income.

Total benefits and expenses of $11.9 billion decreased approximately 0.8% year over year in the quarter. The decrease in expenses is mainly attributable to lower insurance and annuity benefits and interest expenses.

Full-Year Highlights

Prudential Financial's adjusted operating income for 2016 came in at $9.13 per share, down 9.1% year over year.

Total revenues climbed 6.1% year over year to $51.6 billion.

Quarterly Segment Update

U.S. Retirement Solutions and Investment Management reported adjusted operating income of $964 million, up 24.2% year over year. The upside was driven by higher contribution from Individual Annuities, Retirement, and Asset Management businesses.

U.S. Individual Life and Group Insurance reported adjusted operating income of $181 million, up 43.7% from the prior-year quarter. Higher contribution from Individual Life led to the upside.

International Insurance reported adjusted operating income of $755 million, up 2.3% year over year. The upside was due to higher contribution from Life Planner operations.

Corporate and Other Operations reported adjusted operating loss of $441 million, narrower than a loss of $458 million in the year-ago quarter.

As of Dec 31, 2016, Prudential Financial's assets under management increased 6.8% to $1.264 trillion from $1.184 trillion as of Dec 31, 2015. Book value, a measure of the company's net worth, increased 9.6% to $71.62 per share as of Dec 31, 2016, from $65.32 per share as of Dec 31, 2015.

Prudential Financial, Inc. Price, Consensus and EPS Surprise

Prudential Financial, Inc. Price, Consensus and EPS Surprise | Prudential Financial, Inc. Quote

Zacks Rank

Currently, Prudential Financial holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Performance of Other Multi-Line Insurers

Among other multi line insurers that have reported their fourth-quarter earnings so far, the bottom line at Assurant, Inc. AIZ and The Hartford Financial Services Group, Inc. HIG beat their respective Zacks Consensus Estimate, while CNO Financial Group, Inc. CNO missed the same.

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Assurant, Inc. (AIZ): Free Stock Analysis Report

Hartford Financial Services Group, Inc. (The) (HIG): Free Stock Analysis Report

CNO Financial Group, Inc. (CNO): Free Stock Analysis Report

Prudential Financial, Inc. (PRU): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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