Prudential posts lower earnings

NEW YORK (Reuters) - Prudential Financial Inc (PRU.N), one of the largest U.S. life insurers, said on Wednesday that third-quarter net income fell 25 percent, hurt by investment losses, but operating earnings beat analysts' expectations.

Net earnings dropped to $860 million, or $1.88 a share, from $1.15 billion, or $2.38 a share, in the year-earlier quarter.

Newark, New Jersey-based Prudential, a top U.S. writer of annuities, said adjusted operating earnings, which analysts use to measure performance, were $905 million, or $1.97 a share.

That beat the average analyst target of $1.69 a share, according to Reuters Estimates, and was above the year-ago quarter, when it posted $828 million, or $1.72 a share, in operating earnings.

The insurer also raised its outlook for the full year to $7.45 to $7.60 a share in adjusted operating income from a previous forecast of $7.20 to $7.40.