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The Newark, New Jersey-based company reported net income attributable to the company for the third quarter of $1.09 billion or $2.35 per share, compared to a net loss of $118 million or $0.25 per share in the year-ago quarter.
Income from continuing operations attributable to Prudential Financial totaled $1.09 billion or $2.36 per share, compared to a loss of $123 million or $0.27 per share in the same quarter last year.
On average, eighteen analysts polled by Thomson Reuters expected the company to earn $1.33 per share for the quarter. Analysts estimates typically exclude special items.
The current quarter result includes $234 million of pre-tax net realized investment losses and related charges and adjustments. Net realized investment losses in the current quarter reflect $360 million of losses from impairments and sales of credit-impaired investments.
Net income for the current quarter also reflects pre-tax increases of $694 million in recorded asset values and $458 million in recorded liabilities representing changes in value which are expected to ultimately accrue to contractholders.
Total revenues for the quarter increased to $6.60 billion from $6.35 billion in the prior-year quarter. Five analysts had a revenue consensus of $6.65 billion for the third quarter.
In the immediately preceding second quarter, Prudential Financial reported a drop in its profit, as losses related to pre-tax investment and other items hurt earnings. Results for the quarter also reflected lower revenues, hit by lower investment income, policy charges and fees. Net income of its Financial Services Businesses attributable to Prudential Financial dropped to $538 million or $1.25 per share from $566 million or $1.32 per share in the year-ago quarter. Total revenue for the quarter decreased to $6.34 billion from $6.85 billion in the same quarter a year ago. The Street expected revenues of $6.55 billion for the quarter.
Among others in the industry, MetLife Inc. (MET | Quote | Chart | News | PowerRating) reported a third-quarter net loss of $650.0 million or $0.79 per share, compared to a profit of $600 million or $0.83 per share in the year-ago quarter. Third-quarter total revenues fell 1% to $12.41 billion from $12.57 billion in the same quarter last year. Premiums for the quarter decreased to $6.60 billion from $6.79 billion in the previous year quarter.
McKinney, Texas-based insurance company Torchmark Corp. (TMK | Quote | Chart | News | PowerRating) reported a rise in the third-quarter profit to $100.8 million or $1.22 per share from $63.15 million or $0.72 per share a year ago. Total revenues for the quarter increased to $784.85 million from $753.35 million in the prior year period.
Net income of Prudential's Financial Services businesses was $1.04 billion, compared to a loss of $113 million in the prior-year quarter. After-tax adjusted operating income for the Financial Services Businesses was $733 million or $1.59 per share, compared to $430 million or $1.02 per share for the third quarter of 2008.
Prudential Financial's revenues from premiums increased to $3.36 billion from $2.80 billion in the third-quarter of fiscal 2008. Policy charges and fee income for the quarter was $693 million compared to $709 million in the similar period last year. Net investment income for the quarter was $2.06 billion, down from $2.08 billion in the prior-year similar quarter.
U.S. Retirement Solutions and Investment Management division reported adjusted operating income of $166 million for the third quarter of 2009, compared to $307 million in the year-ago quarter. U.S. Individual Life and Group Insurance division's quarterly adjusted operating income slipped to $307 million from $339 million in the last year. International Insurance and Investments division posted third-quarter adjusted operating income of $513 million, higher than $497 million in the year-ago quarter. Corporate and Other operations reported a widened quarterly adjusted operational loss of $201 million, compared with loss of $38 million in the year-ago quarter.
On a consolidated basis, which includes the results of both the Financial Services Businesses and the Closed Block Business, Prudential Financial, Inc. reported third-quarter net income attributable to Prudential Financial of $1.08 billion, compared to a net loss of $176 million for the year-ago quarter.
Realized investment losses for the quarter narrowed to $234.0 million from $547.0 million in the corresponding period last year.
The company reported an investment gain of $694.0 million for the quarter, compared to a net investment loss of $534 million in the year-ago similar quarter.
Total benefits and expenses for the quarter decreased to $5.66 billion from $5.74 billion in the same period last year.
Interest expense for the quarter was $228.0 million, down from $287.0 million in the third-quarter of fiscal 2008. Other expenses for the quarter decreased to $1.49 billion from $1.56 billion in the prior-year corresponding quarter.
For the nine-month period, net income for the Financial Services Businesses attributable to Prudential Financial surged to $1.62 billion or $3.72 per share from $516 million or $1.26 per share in the year-ago period.
Year-to-date, net income of Financial services businesses was $1.58 billion, while income from continuing operations attributable to Prudential Financial was $1.61 billion. Total revenue for the period rose to $20.94 billion from $20.13 billion in the same period a year ago. .
At September 30, 2009, assets under management amounted to $641 billion, compared to $558 billion at December 31, 2008.
Looking forward, the company said it is raising its fiscal 2009 common stock earnings guidance to $5.40 to $5.60 per share, from its prior range of $5.00 - $5.20 per share, based on after-tax adjusted operating income of the Financial Services Businesses. Analysts currently expect earnings of $5.47 per share for fiscal 2009.
PRU closed Wednesday's regular trading at $46.56, down $0.45 or 0.96%, on a volume of 5.81 million shares on the NYSE. In after-hour, the stock gained $0.19 or 0.41%, trading at $46.75.
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