Prudential Financial Inc. (PRU), one of the biggest life insurer in the U.S., Tuesday posted a loss for the second quarter, hurt largely by the the effects of the coronavirus pandemic and economic and market shocks.
Second-quarter net loss was $2.41 billion or $6.12 per share compared to a net income of $708 million or $1.71 per share last year.
Adjusted operating income was $742 million or $1.85 per share, down from $1.26 billion or $3.03 per share last year.
Analysts polled by Thomson Reuters expected earnings of $1.71 per share for the quarter. Analysts’ estimates typically exclude one-time items.
Commenting on the results, CEO Charles Lowrey said, “During the second quarter, we displayed resiliency amidst the effects of the pandemic and economic and market shocks while continuing to execute against our 2020 priorities with urgency, benefiting from our complementary business mix, our rock-solid balance sheet, and our carefully constructed risk profile. We remain on track to achieve our targeted $140 million of cost savings for the year and are making progress in transitioning our international earnings base to higher-growth markets.”
Investment-management unit PGIM reported adjusted operating income of $324 million in the second quarter, compared to $264 million in the year-ago quarter. U.S. Businesses reported adjusted operating income of $455 million, compared to $875 million in the year-ago quarter.
U.S. Workplace Solutions, consisting of Retirement and Group Insurance, reported adjusted operating income of $286 million, down from $548 million last year. Retirement reported adjusted operating income of $281 million, compared to $467 million a year ago. Group Insurance reported adjusted operating income of $5 million, compared to $81 million in the year-ago quarter.
PRU closed Tuesday’s trading at $63.28, down $1.15 or 1.78%, on the NYSE. The stock further dropped $0.22 or 0.35% in the after-hours trade.
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