* 2nd-quarter adj operating earnings/share $2.30 vs est
* U.S. retirement solutions earnings nearly triple
* Asset management fees up 35 pct
Aug 7 Prudential Financial Inc, the
second-largest U.S. life insurer, reported a
bigger-than-expected quarterly adjusted profit, driven by gains
in its retirement services business and higher fee income from
asset management services.
The company said operating earnings in its U.S. retirement
solutions and investment management business nearly tripled to
$847 million in the second quarter from $306 million a year
On an adjusted operating basis, fee from asset management
rose 35 percent to $1.25 billion, while policy charges and fee
income rose 35 percent to $1.46 billion.
Net loss of financial services businesses attributable to
the company was $524 million, or $1.13 per share, in the quarter
ended June 30, compared with a profit of $2.23 billion, or $4.69
per share, a year earlier.
The company booked pre-tax charges of about $1.6 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 an 80 percent fall
in its quarterly profit due to derivative losses but still
managed to beat analysts' estimates as operating earnings
increased in the company's retail insurance business.
On an adjusted operating basis, Prudential earned $2.30 per
Analysts on average had expected earnings of $1.99 per share
on revenue of $12.20 billion, according to Thomson Reuters
Prudential shares, which have gained 26 percent since the
company last reported its quarterly results, were up 1.4 percent
in extended trading. The stock closed at $79.37 on the New York
Stock Exchange on Wednesday.