NU Online News Service, May 5, 2004, 4:02 p.m. EDT – The recently completed acquisition of American Skandia contributed to higher first-quarter profits at Prudential Financial Inc., Newark, N.J.[@@]
Prudential is reporting total net income of $401 million in net income for the latest quarter on $6.7 billion in revenue, up from $196 million in net income on $6.8 billion in revenue for the first quarter of 2003.
Prudential splits results for its continuing financial services operations and a closed block of business left over from the days before it demutualized.
The closed block business generated $111 million in net income on $2 billion in revenue, compared with a net loss of $1 million on $1.9 billion in revenue for the first quarter of 2003.
The financial services business is reporting $290 million in net income on $4.8 billion in revenue, up from $197 million in net income on $4.6 billion in revenue.
The addition of American Skandia helped push Prudential’s individual life and annuity operating income up 43%, to $185 million. Gross annuity sales soared to $1.8 billion, from $441 million.
Overseas, strong profits in Japan and Korea led to a 29% increase in international insurance operating income, to $215 million.