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Prudential profit beats estimates as asset management fees rise
August 6, 2014 / 8:55 PM / 3 years ago

Prudential profit beats estimates as asset management fees rise

Aug 6 (Reuters) - Prudential Financial Inc, the second-largest U.S. life insurer, reported a better-than-expected quarterly profit, helped by higher asset management fees.

The company’s financial services businesses reported net income of $1.05 billion, or $2.22 per share, for the second quarter ended June 30, compared with a net loss of $517 million, or $1.12 per share, a year earlier.

Prudential Financial booked pre-tax charges of about $1.6 billion in the year earlier quarter, related to changes in currency rates and derivatives.

“We are benefiting from growth of fees, especially in our annuities and asset management businesses..., ” Chief Executive John Strangfeld said.

Adjusted operating income at the insurer’s asset management business rose about 16 percent to $200 million.

Prudential’s financial services businesses include its U.S. retirement solutions and investment management, U.S. individual life and group insurance, international insurance and its corporate and other operations.

Operating income on an adjusted basis was $2.49 per share. Analysts on average had expected earnings of $2.34 per share, according to Thomson Reuters I/B/E/S.

Prudential shares closed at $86.57 on the New York Stock Exchange on Wednesday. (Reporting by Avik Das in Bangalore; Editing by Sriraj Kalluvila)

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