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February 10, 2007 at 08:00 PM
Stronger investment division results helped Prudential Financial Inc. post higher profits for the fourth quarter of 2006.
Prudential, Newark, N.J., is reporting $1 billion in net income for the latest quarter on $8.9 billion in revenue, up from $364 million in net income on $7.9 billion in revenue for the fourth quarter of 2005.
Total results at Prudential include results for a large closed block of business.
Net income at Prudential’s financial services businesses increased to $893 million, from $377 million, the company says.
Adjusted operating income fell to $349 million, from $365 million, at the insurance division, due in part to less favorable mortality experience, Prudential says.
Variable life sales fell to $20 million, from $27 million, but universal life sales increased to $75 million, from $56 million, and term life sales increased to $48 million, from $33 million, Prudential says.
At the investment division, adjusted operating income increased to $355 million, from a loss of $4 million. Overall division results improved in part because results for the fourth quarter of 2005 included reserves set aside to cover the cost of market-timing settlements, Prudential says.
In other earnings news:
- Lincoln National Corp., Philadelphia, is reporting $381 million in net income for the latest quarter on $2.7 billion in revenue, up from $225 million in net income on $1.4 billion in revenue for the fourth quarter of 2005.
An acquisition and strong universal life sales activity helped increase paid annualized individual life premium revenue 37%, to $218 million.
Variable annuity sales and account value growth also were strong, Lincoln says.
- Principal Financial Group Inc., Des Moines, Iowa, is reporting $292 million in net income for the latest quarter on $2.6 billion in revenue, up from $255 million in net income on $2.5 billion in revenue for the fourth quarter of 2005.
Health and specialty benefits loss ratios were worse than they were in the comparable quarter in 2005, the company says.
- Nationwide Financial Services Inc., Columbus, Ohio, is reporting $154 million in net income for the latest quarter on $1.1 billion in revenue, up from $130 million in net income on $1.1 billion in revenue for the fourth quarter of 2005.
Individual variable annuity sales increased 60%, to $1.4 billion.
- Torchmark Corp., McKinney, Texas, is reporting $142 million in net income for the latest quarter on $857 million in revenue, up from $126 million in net income on $769 million in revenue for the fourth quarter of 2005.
