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Prudential Financial, Inc. (PRU - Free Report) reported third-quarter 2016 operating income of $2.66 per share that beat the Zacks Consensus Estimate by 6.4%. Earnings also improved 10.8% year over year.
Including the impact of one-time items, net income was $4.07 per share, up 28.8% year over year.
Total revenue surged 35.9% year over year to $15.1 billion due to 69.4% higher premiums, 0.5% growth in policy charges and fee income, 9.2% increase in net investment income, and 2.2% rise in asset management fees, commissions and other income.
Total benefits and expenses of $13.5 billion increased approximately 40.3% year over year in the quarter. The increase in expenses is mainly attributable to higher insurance and annuity benefits, interest credited to policyholders’ account balances, as well as general and administrative expenses.
Quarterly Segment Update
U.S. Retirement Solutions and Investment Management reported adjusted operating income of $1.02 billion, up 39.1% year over year. The upside was driven by higher contribution from Individual Annuities as well as Asset Management businesses.
U.S. Individual Life and Group Insurance reported an adjusted operating income of $173 million, which declined 23.8% from the prior-year quarter. Lower contribution from Individual Life led to the downside.
International Insurance reported adjusted operating income of $780 million, down 3.9% year over year. The decline was due to lower contribution from Life Planner, Gibraltar Life, and Other operations.
Corporate and Other Operations reported adjusted operating loss of $413 million, wider than a loss of $308 million in the year-ago quarter.
As of Sep 30, 2016, Prudential Financial’s assets under management increased 10.9% to $1.314 trillion from $1.184 trillion as of Dec 31, 2015. Book value, a measure of the company’s net worth, increased 8.7% to $79.55 per share as of Sep 30 2016 from $73.19 per share as of Sep 30, 2015.
Among other multi line insurers that have reported their third-quarter earnings so far, the bottom line at Assurant, Inc. (AIZ - Free Report) and American International Group Inc. (AIG - Free Report) missed their respective Zacks Consensus Estimates, while CNO Financial Group, Inc. (CNO - Free Report) beat the same.
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Prudential Financial (PRU) Q3 Earnings Beat, Improve Y/Y
Prudential Financial, Inc. (PRU - Free Report) reported third-quarter 2016 operating income of $2.66 per share that beat the Zacks Consensus Estimate by 6.4%. Earnings also improved 10.8% year over year.
Including the impact of one-time items, net income was $4.07 per share, up 28.8% year over year.
Total revenue surged 35.9% year over year to $15.1 billion due to 69.4% higher premiums, 0.5% growth in policy charges and fee income, 9.2% increase in net investment income, and 2.2% rise in asset management fees, commissions and other income.
Total benefits and expenses of $13.5 billion increased approximately 40.3% year over year in the quarter. The increase in expenses is mainly attributable to higher insurance and annuity benefits, interest credited to policyholders’ account balances, as well as general and administrative expenses.
Quarterly Segment Update
U.S. Retirement Solutions and Investment Management reported adjusted operating income of $1.02 billion, up 39.1% year over year. The upside was driven by higher contribution from Individual Annuities as well as Asset Management businesses.
U.S. Individual Life and Group Insurance reported an adjusted operating income of $173 million, which declined 23.8% from the prior-year quarter. Lower contribution from Individual Life led to the downside.
International Insurance reported adjusted operating income of $780 million, down 3.9% year over year. The decline was due to lower contribution from Life Planner, Gibraltar Life, and Other operations.
Corporate and Other Operations reported adjusted operating loss of $413 million, wider than a loss of $308 million in the year-ago quarter.
As of Sep 30, 2016, Prudential Financial’s assets under management increased 10.9% to $1.314 trillion from $1.184 trillion as of Dec 31, 2015. Book value, a measure of the company’s net worth, increased 8.7% to $79.55 per share as of Sep 30 2016 from $73.19 per share as of Sep 30, 2015.
PRUDENTIAL FINL Price, Consensus and EPS Surprise
PRUDENTIAL FINL Price, Consensus and EPS Surprise | PRUDENTIAL FINL 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 third-quarter earnings so far, the bottom line at Assurant, Inc. (AIZ - Free Report) and American International Group Inc. (AIG - Free Report) missed their respective Zacks Consensus Estimates, while CNO Financial Group, Inc. (CNO - Free Report) beat the same.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>