Prudential Financial, Inc. reported lower third-quarter adjusted operating income as Japan earnings weakened amid a sales suspension, while its investment-management arm posted a gain.
After-tax adjusted operating income was $1.321 billion for the quarter, compared with $1.444 billion a year earlier. Net income attributable to Prudential came to $1.388 billion, or $3.96 per common share, versus $1.431 billion, or $4.01 per share. Adjusted operating income is a non-GAAP measure.
Japan Businesses reported $559 million in pretax adjusted operating income, down from $750 million in the year-ago quarter. Prudential said the sales suspension added costs and weakened underwriting; lower net investment spreads also weighed on results.
PGIM, Prudential’s investment-management business, reported $263 million in pretax adjusted operating income, up from $244 million. U.S. Businesses posted $1.173 billion, compared with $1.188 billion a year earlier.
Prudential announced segment reporting changes on Oct. 15. Under the revised presentation, Brazil and Mexico results are reported in Divested and Run-off Businesses within Corporate and Other. The former International Businesses segment was renamed Japan Businesses, and no longer includes results from Prudential’s indirect interest in Administradora de Fondos de Pensiones Habitat S.A. The release describes changes to segment reporting, not a transfer of operations.
The SEC filing index records Prudential’s Form 8-K filing on Nov. 3 and lists the earnings release and quarterly financial supplement as exhibits. Senior management is scheduled to discuss the results on a conference call Nov. 4 at 11 a.m. ET.
