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Prudential Financial (NYSE:PRU) Q2 rose from a year ago, fueled by a 67% surge in its U.S. businesses segment, the insurer reported on Tuesday.
“Our second quarter results reflect continued momentum across our businesses, including the fourth consecutive quarter of underlying earnings growth and record operating earnings for Group Insurance,” said Chairman and CEO Charles Lowrey.
Q2 adjusted operating EPS of $2.94, trailing the $3.01 consensus, rose from $2.34 in Q2 2022. The current quarter included a net after-tax benefit of from its annual assumption update and other refinements totaling $0.03 per share compared with a charge of $3.36 a year ago. The year-ago quarter also included a $2.99 per share gain on the sale of a block of legacy variable annuities.
PRU stock edged up 0.1% in after-hours trading.
Adjusted book value per common share of $97.38 at June 30, rose from $97.29 at March 31.
Q2 operating return on average equity increased to 12.2% from 11.2% 9.4% in Q2 2022.
Prudential’s (PRU) assets under management of $1.415T at the end of Q2 2023 edged down from $1.417T at March 31.
Global investment management division PGIM saw adjusted operating income before income taxes of $179M, down from $206M in Q2 2022.
PGIM adjusted operating margin was 21.0% in Q2, compared 25.1% in Q2 2022.
U.S. businesses segment adjusted operating income before income taxes of $956M climbed from $573M in Q2 2022.
U.S. businesses/retirement strategies unit adjusted operating income before income taxes dropped to $876M from $2.18B a year ago.
Group Insurance adjusted operating income of $139M, a record high, soared from $54M in the year-ago quarter; the most recent quarter included favorable comparative impact from its annual assumption update and other refinements of $39M. Excluding that item, the results primarily reflect more favorable underwriting results in both group life and disability, partially offset by higher expenses driven by business growth.
International businesses unit adjusted operating income before income taxes amounted to $784M vs. $692M in the year-ago period.
Q2 benefits and expenses slipped to to $11.25B from $11.81B a year ago.
Conference call on Aug. 2 at 11:00 AM ET.
Earlier, Prudential Financial (PRU) non-GAAP EPS of $2.94 misses by $0.07