Thursday, August 6, 2009

Prudential Financial Profit Declined By 5%

Prudential Financial Profit Declined By 5%
One of the famous insurance and investment company Prudential Financial Inc on Wednesday reported a second quarter profit as it benefited from improving the financial market condition.

The adjusted profit topped the analysts expectations and the company shares rose to around 3% in after hour trading. The company’s financial service business earned around $538 million or $1.25 per share compared to around $566 million or $1.32 per share. The company’s adjusted income totaled to around $817 million. The annuity sales rose to around $630 million along with life premiums increase to $84 million.

Last month Prudential Financial raised around $2.4 billion from public stocks and notes which are offered at funding the government’s financial rescue program. The assets under management amounted to $580 billion compared to around $638 billion a year earlier.

Prudential said that the quarterly income which includes the results from financial services and businesses closed to around $163 million compared to around $581 million a year. The company closed block of business life insurance and annuity policies which were issued on December but still are at force which reported a loss of $375 million in comparison to $15 million last year. Prudential Financial shares gained $1.32 to $48.20 in afterhours trading following earnings release. The insurance division posted an earning of $243 million from $183 million.

As the reports state Prudential Financial earned adjusted operating income to $5.20 per share which would be an increase of upto 2 percent per quarter in index as of 31 December.

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