* 3rd-qtr net profit $981 mln vs $627 mln loss year earlier
* 3rd-qtr operating earnings/shr $2.94vs est $2.10
Nov 6 Prudential Financial Inc, the
second-largest U.S. life insurer, reported higher-than-expected
adjusted quarterly profit, driven its retirement services and
The company said operating earnings in its U.S. retirement
solutions and investment management business more than doubled
to $1.26 billion in the third quarter from $506 million a year
On an adjusted operating basis, income from annuities
business almost tripled to $821 million for the quarter.
The company, however, booked pre-tax charges of about $1.7
billion tied to changes in currency rates and derivatives.
Insurers, who use derivatives to hedge against fluctuations
in interest rates, are being squeezed as the U.S. Federal
Reserve's monthly bond buying program has kept interest rates
low to boost spending.
Larger rival MetLife Inc reported a third-quarter
profit that narrowly missed analysts' estimates as the largest
U.S. life insurer paid more in claims and benefits to
Net income of financial services businesses attributable to
the company was $981 million, or $2.07 per share, for the
quarter ended Sept. 30, compared with a loss of $627 million, or
$1.34 per share, a year earlier.
On an adjusted operating basis, Prudential earned $2.94 per
share in the three months ended Sept. 30.
Analysts on average had expected earnings of $2.10 per share
on revenue of $12.48 billion, according to Thomson Reuters
U.S. regulators voted in September to designate the insurer
as systemically risky, bringing it under stricter regulatory
The insurer said in October that it will not ask a federal
court to overturn the designation by the U.S. risk council.
Shares of the Newark, New Jersey-based Prudential closed at
$81.79 on the New York Stock Exchange on Wednesday.