NU Online News Service, May 8, 11:15 a.m. – Prudential Financial Inc., Newark, N.J., is reporting $153 million in net income for the first quarter on $6.7 billion in revenue, down from $437 million in net income on $6.7 billion in revenue for the first quarter of 2001.

Consolidated net results for the latest quarter include $96 million in investment losses, $8 million in losses on divested businesses, and $110 million in “closed block” losses on life policies sold before Prudential demutualized.

Prudential prefers to measure its performance using financial services business “adjusted operating income,” a figure that excludes the investment losses and closed-block losses.

The company’s adjusted operating income fell to $263 million for the latest quarter, from $403 million.

Thanks in part to the acquisition of Gibraltar Life, Prudential’s international division reported the best results. The international division generated $200 million in operating income for the first quarter on $1.4 billion in revenue, up from $98 million in operating income on $672 million in revenue.

The employee benefits division brought in $66 million in operating income on $1.5 billion in revenue, down from $104 million in operating income on $1.5 billion in revenue. Prudential is blaming the drop in earnings on weak investment returns on guaranteed investment contracts.

The U.S. consumer division is reporting $171 million in operating income on $1.8 billion in revenue, down from $194 million in operating income on $1.9 billion in revenue.

At the consumer division, term life revenue increased 30%, to $13 million, but variable and universal life revenue fell to $55 million, from $65 million.

Revenue from corporate-owned life insurance plunged to $10 million, from $37 million.