(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.