February 9, 2011

2010 Q4 Earnings: Prudential Profit Is $213 Million on Strong Annuity Sales

Account values pass $100 billion milestone

 

Prudential Financial Inc. on Wednesday reported a profit in its financial services businesses of $2.71 billion ($5.75 per share) for the year ended Dec. 31, 2010. This compares to $3.41 billion ($7.63 per share) for 2009.

The company also said individual annuity gross sales were $6.1 billion, compared to $4.8 billion a year ago, and account values surpassed a $100 billion milestone, reaching record high $106.2 billion at Dec. 31, 2010.

After-tax adjusted operating income for the financial services businesses was $2.968 billion ($6.27 per share) for 2010, compared to $2.448 billion ($5.51 per share) for 2009. 

For the fourth quarter of 2010, net income for the financial services businesses amounted to $213 million ($0.45 per share) compared to $1.788 billion ($3.78 per share) for the fourth quarter of 2009. After-tax adjusted operating income for the fourth quarter of 2010 amounted to $861 million ($1.78 per share), compared to $557 million ($1.20 per share) for the fourth quarter of 2009.

“Our solid operating results for the fourth quarter and the year reflect sustained organic growth in our key U.S. retirement and international insurance businesses," chairman and chief executive officer John Strangfeld said in a statement. "Our commitment to these markets, coupled with solid value propositions and expanding distribution, has fueled our progress. We are pleased to have surpassed significant milestones in the past year including individual annuity account values over $100 billion and retirement account values over $200 billion, and we see continued growth opportunities in serving clients focused on financial security."

Operational highlights for the fourth quarter include:

  • Full service retirement gross deposits and sales of $4.4 billion and net withdrawals of $1.0 billion, compared to gross deposits and sales of $4.0 billion and net additions of $903 million a year ago. Total Retirement account values surpass $200 billion milestone, reaching record high $205.5 billion at Dec. 31, 2010.
  • Individual life annualized new business premiums of $67 million, compared to $91 million a year ago.
  • Group insurance annualized new business premiums of $109 million, compared to $62 million a year ago.
  • International insurance constant dollar basis annualized new business premiums of $501 million, up 32% from $379 million a year ago.
  • Assets under management of $784 billion at Dec. 31, 2010, compared to $667 billion at Dec. 31, 2009.
  • Gross unrealized losses on general account fixed maturity investments of the Financial Services Businesses of $3.1 billion at Dec. 31, 2010, compared to $4.4 billion at Dec. 31, 2009; net unrealized gains of $5.7 billion at Dec. 31, 2010 compared to $998 million at December 31, 2009.
  • GAAP book value for Financial Services Businesses, $31.0 billion or $63.11 per Common share at Dec. 31, 2010, compared to $24.2 billion or $51.52 per Common share at Dec. 31, 2009.

Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.

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