The net loss for the Financial Services Businesses attributable to Prudential Financial, Inc. was $721 million ($1.55 per Common share) for the first quarter of 2013, compared to a net loss of $960 million ($2.03 per Common share) for the year-ago quarter. Information regarding adjusted operating income, a non-GAAP measure, is provided below.
The Company acquired The Hartford’s individual life insurance business through a reinsurance transaction on January 2, 2013. Results of the Financial Services Businesses include the results of this business from the date of acquisition.
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"Our outstanding first quarter results, reflecting solid earnings growth in each of our Divisions, give us a strong start toward achievement of our objectives for the year, and we are continuing to build our base of high quality business with strong sales and flows virtually across the board. Our U.S. Retirement business reported record-high earnings, driven by the first full quarter contribution of the landmark pension risk transfer transactions we completed late last year. We’ve strengthened our franchise as a leading U.S. life insurer with our acquisition of The Hartford’s individual life insurance business in January, and we are pleased to welcome valued distribution partners, talented staff, and over 650,000 new clients to Prudential. Our International Insurance business continues to perform well, with record-high earnings in the quarter and strong sales across multiple distribution channels," said Chairman and Chief Executive Officer John Strangfeld.
Adjusted operating income is not calculated under generally accepted accounting principles (GAAP). Information regarding adjusted operating income, a non-GAAP measure, is discussed later in this press release under "Forward-Looking Statements and Non-GAAP Measures," and a reconciliation of adjusted operating income to the most comparable GAAP measure is provided in the tables that accompany this release.
Financial Services Businesses First Quarter Highlights
- Pre-tax adjusted operating income up 42% from year-ago quarter, with increases in each operating division.
- International Insurance earnings up 47%.
- Record high earnings in Prudential Retirement, driven by first full quarter of results from two significant pension risk transfer transactions in late 2012.
- Retirement account values $299.4 billion at March 31, up 25% from a year earlier; gross deposits and sales for the quarter of $9.5 billion, net additions $2.5 billion.
- Asset Management net institutional and retail net flows, excluding money market, total $8.7 billion; segment assets under management $840.3 billion at March 31, up 15% from a year earlier.
- Individual Annuity account values $142.7 billion at March 31, up 15% from a year earlier; gross sales for the quarter of $4.2 billion, net sales $2.4 billion.
- U.S. Individual Life earnings up 22%, reflecting initial contribution from in-force business acquired from The Hartford in January 2013.
- U.S. Individual Life annualized new business premiums $216 million, compared to $79 million a year ago; expanded distribution from Hartford Life acquisition contributes $63 million to current quarter sales.
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