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Prudential Financial, Inc. (PRU - Free Report) 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
Among other multi line insurers that have reported their fourth-quarter earnings so far, the bottom line at Assurant, Inc. (AIZ - Free Report) and The Hartford Financial Services Group, Inc. (HIG - Free Report) beat their respective Zacks Consensus Estimate, while CNO Financial Group, Inc. (CNO - Free Report) missed the same.
Zacks' Top 10 Stocks for 2017
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Prudential Financial (PRU) Q4 Earnings Beat, Improve Y/Y
Prudential Financial, Inc. (PRU - Free Report) 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 - Free Report) and The Hartford Financial Services Group, Inc. (HIG - Free Report) beat their respective Zacks Consensus Estimate, while CNO Financial Group, Inc. (CNO - Free Report) missed the same.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>