Strong variable annuity earnings and a solid performance by the Wachovia securities distribution channel fueled a 30% increase in second-quarter profits at Prudential Financial Inc.[@@]
Prudential, Newark, N.J., is reporting $754 million in net income for the second quarter on $5.8 billion in revenue, up from $519 million in net income on $5.1 billion in revenue for the second quarter of 2004.
Suneet Kamath, a life industry analyst at Bernstein Research Inc., New York, says one plus for the company this period was an entry for $161 million in positive variable annuities flow on sales of $1.8 billion. During the previous 3 quarters, cash flowed out of Prudential VA contracts.
Fixed annuity sales were up a “surprising” 24% from the second quarter of last year. “The primary driver here was the impact of a sales promotion in the Wachovia channel,” Kamath writes in a comment on Prudential’s earnings.