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August 03, 2006 at 12:54 PM
Losses on the sale of fixed-income investments and fluctuations in the value of hedging instruments affected net results at Prudential Financial Inc. during the second quarter.
Prudential, Newark, N.J., is reporting $453 million in net income for the latest quarter on $7.4 billion in revenue, compared with $883 million in net income on $8.3 billion in revenue for the second quarter of 2005.
Prudential’s financial services business, which includes what Prudential defines as its ongoing business, is reporting $424 million in net income for the latest quarter on $6 billion in revenue, compared with $754 million in net income on $5.7 billion in revenue for the second quarter of 2005.
The financial services business recorded $249 million in net investment gains during the second quarter of 2005 and $311 million in net investment losses during the latest quarter.
In other earnings news:
- CIGNA Corp., Philadelphia, is reporting $273 million in net income for the second quarter on $4.1 billion in revenue, compared with $720 million in net income on $4.1 billion in revenue for the second quarter of 2005.
The managed care company ended the quarter providing or administering health coverage for about 9 million people, about as many as it was covering a year earlier.
- Health Net Inc., Los Angeles, is reporting $77 million in net income for the second quarter on $3.3 billion in revenue, up from $54 million in net income on $3 billion in revenue for the second quarter of 2005.
The managed care company ended the quarter providing or administering health coverage for 3.5 million people, up from 3.4 million people a year earlier.
- UnumProvident Corp., Chattanooga, Tenn., is reporting $125 million in net income for the second quarter on $2.7 billion in revenue, compared with $171 million in net income on $2.7 billion in revenue for the second quarter of 2005.
UnumProvident, a major disability insurer, has been trying to emphasize profitability of new business over sales in recent years, and that has affected sales. During the latest quarter, sales rebounded. Sales of fully insured group short-term disability coverage increased 28%, to $19 million, and sales of fully insured group long-term disability coverage increased 6.7%, to $51 million.
- Assurant Inc., New York, is reporting $151 million in net income for the second quarter on $1.9 billion in revenue, up from $127 million in net income on $1.9 billion in revenue for the second quarter of 2005.
Benefits operating income increased 110%, to $21 million, because of favorable life, disability and dental claims experience, Assurant says.
- Nationwide Financial Services Inc., Columbus, Ohio, is reporting $258 million in net income for the second quarter on $1.1 billion in revenue, compared with $141 million in net income on $1.1 billion in revenue for the second quarter of 2005.
