Finance

Prudential Financial says COVID-19 impact 'beginning to moderate'

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NEW YORK, Aug 4 (Reuters) - Prudential Financial Inc (PRU.N) said on Wednesday that the effect of COVID-19 on its group and individual life insurance appears to be lessening in the third quarter.

While the disease is still affecting the U.S. insurer, the impact is "beginning to moderate," the New Jersey insurer's head of U.S. businesses Andrew Sullivan said on a conference call.

The company noted that those with insurance were more likely to be vaccinated. "We believe that the vaccination rate of the insured population is higher than the general population," Chief Financial Officer Kenneth Tanji said on call.

The company said it expects after-tax adjusted operating income for the third quarter to fall to $2.59 a share from $3.79 a share in the second quarter, primarily due to timing of certain expenses and lower variable investment income.

Prudential's second-quarter after-tax adjusted operating income topped analysts' estimates by 68 cents a share, as strength in life and annuity businesses offset weakness in its investment unit. read more

The insurer's shares were down 1.5% at $100.61 in mid-day trading on the New York Stock Exchange.

(This story was corrected to fix attribution in third paragraph to CFO from CEO)

Reporting by Sohini Podder in Bangalore and Alwyn Scott in New York; Editing by Jonathan Oatis and Mike Harrison

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