Prudential Financial beats estimates on life, annuity strength Reuters via

Prudential Financial beats estimates on life, annuity strength

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(Reuters) – Prudential Financial Inc (NYSE:) beat analysts’ estimates for quarterly adjusted profit on Tuesday, as strong performance at the U.S. insurer’s life and annuity units cushioned against weakness in its investment business.

PGIM, Prudential (NYSE:)’s global investment management business, reported a 2.8% fall in adjusted operating income to $315 million in the second quarter ended June 30, while assets under management rose 8% to a record of $1.5 trillion.

The company’s U.S. individual life insurance segment posted an adjusted operating profit of $146 million, compared with a loss of $64 million a year earlier.

Adjusted operating income at its annuity segment soared nearly 90% to $472 million. An annuity is a long-term insurance contract which allows consumers to generate a steady income during retirement.

Global life insurers are taking steps to curb payouts stemming from the health crisis and have been helped by a fall in dental and other non-medical health claims.

Total after-tax adjusted operating income rose to $1.51 billion, or $3.79 per share, from $740 million, or $1.85 per share, a year earlier.

Analysts on average had expected a profit of $3.11 per share, according to data from Refinitiv.

Prudential also said it now expects to return a total of $11billion to shareholders through 2023, up from the $10.5 billion announced in May.