Prudential Financial posts 1Q loss on charges
Prudential Financial posts 1st-quarter loss on charges, adjusted earnings beat expectations
NEWARK, N.J. (AP) -- Prudential Financial Inc. posted a first-quarter loss as the life insurer took a hefty charge tied to the value of the Japanese yen, but its adjusted earnings topped market expectations.
The Newark, N.J., company said Wednesday that it lost $721 million, or $1.55 per share. That includes pre-tax charges of about $2.5 billion tied to foreign-currency rates and $3 billion in investment losses. A year ago it reported a loss of $960 million, or $2.03 per share. Excluding one-time charges Prudential made $2.28 per share on an adjusted basis in the recent quarter.
Total revenue increased to $11.83 billion from $10.5 billion.
Analysts polled by FactSet expected $1.87 per share on revenue of $12.43 billion, according to FactSet.
Prudential said earnings grew in each of its divisions. Its U.S. life insurance business benefited from the acquisition of The Hartford's individual life insurance business in January. The international insurance segment, which provides life insurance products for affluent and middle-income markets in Japan, Korea, and other countries, had stronger sales but encountered the sinking value of the yen against the U.S. dollar.
Prudential had $1.061 trillion assets under management at the end of the quarter.
Prudential shares rose $4.13, or 7 percent, to $63.41 in afternoon trading. The stock hit a 52-week high of $64.46 earlier in the session amid a broader market rally.
