Prudential Financial (NYSE: PRU) the actions are 3.7% drop Tuesday after-hours trading after the insurer posted earnings below consensus and included a charge for its annual update of assumptions and other improvements.
Q2 Adjusted Operating EPS of $1.74 below consensus of $2.33 and increased from $3.17 in the first quarter and $3.60 in the second quarter of 2021. The current quarter includes a net charge after tax from its annual update of assumptions and other improvements of $2.94 and an after-tax gain on the sale of a block of inherited variable annuities of $1.76.
Adjusted book value per common share of $104.19 as of June 30, 2022 compared to $107.16 as of March 31.
Assets under management of 1,410T$ vs 1,620T$ as of March 31.
“Our second quarter results reflect macro trends, including rising interest rates, widening credit spreads and falling equity markets, as well as the strengthening of our individual life insurance reserves through our annual review of assumptions,” said President and CEO Charles Lowrey. “We also continued to make significant strategic progress in transforming our business to be less market-responsive and more agile, while making additional investments to support our long-term sustainable growth.”
PGIM AUM of $1.26T versus $1.415T at the end of the first quarter, on an annual basis. PGIM AUM fell 17%. Third-party net outflows of $0.2 billion in the current quarter reflect $8.3 billion of retail outflows, primarily fixed income securities, and institutional inflows of $8.1 billion, primarily driven by fixed income securities.
PGIM’s adjusted operating profit was $206 million compared to $188 million in the first quarter and $315 million in the year-ago quarter.
U.S. Business Adjusted Operating Income of $370 million compared to $943 million in the prior quarter and $1.05 billion in the prior year quarter.
Retirement Strategies adjusted operating income of $1.70B vs. $1.04B in Q1 and $922M in Q2 2021.
Group Insurance adjusted operating income of $53 million compared to a loss of $111 million in the prior quarter and a profit of $17 million in the prior year quarter.
Individual Retirement Strategies (formerly Individual Annuities) adjusted operating income of $1.31 billion compared to $472 million in Q1 and $472 million in the prior year quarter.
Adjusted individual life operating loss of $1.33 billion compared to revenue of $51 million in the first quarter and revenue of $146 million in the second quarter of 2021.
Adjusted operating income from international operations of $555 million compared to $801 million in the first quarter and $803 million in the year-ago quarter.
Conference call on August 3 at 11:00 a.m. ET.
Previously, Prudential Financial’s (PRU) non-GAAP EPS of $1.74 was $0.59 short.