* 4th-qtr operating earnings $2.20 vs est $2.23
* Revenue from premiums falls 87 pct
Feb 5 Prudential Financial Inc, the
second-largest U.S. life insurer, reported a lower-than-expected
adjusted operating income due to pretax losses related to the
weakening of Japanese yen against the dollar.
The company booked a pretax charge of about $2.36 billion
related to changes in currency rates, derivatives and investment
losses. This included a $1.20 billion pretax cost related to
foreign exchange, Prudential said.
Insurers, which 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.
Net loss in the financial services businesses attributable
to the company widened to $427 million, or 94 cents per share,
for the quarter ended Dec. 30 from $185 million, or 42 cents per
share, a year earlier.
Prudential's financial services businesses includes its U.S.
retirement solutions and investment management, U.S. individual
life and group insurance, and international insurance divisions
and its corporate and other operations.
On an adjusted operating basis, Prudential earned $2.20 per
On an adjusted operating basis, revenue from premiums fell
87 percent to $5.26 billion, while total revenue fell 76 percent
to $10.98 billion.
Analysts on average had expected earnings of $2.23 per share
on revenue of $11.98 billion, according to Thomson Reuters
Shares of Newark, New Jersey-based Prudential closed at
$82.72 on the New York Stock Exchange on Wednesday.