Prudential Q2 profit rises 85% on higher asset management fees
PRU•Outlook
- Prudential expects to accelerate earnings and free cash flow growth through deeper business integration
- Company sees favorable structural growth trends in core businesses and markets
- Company notes ongoing impact from Prudential of Japan sales suspension but expects continued growth in Brazil
Overview
- US life insurer's Q2 net income attributable rose yr/yr to $985 mln
- Q2 adjusted operating income increased yr/yr to $1.44 bln
- Company returned $743 mln to shareholders, including $250 mln in buybacks
Result Drivers
- Asset management fees - PGIM's higher asset management fees, driven by equity market appreciation and strong investment performance, contributed to earnings growth
- International business mix - International earnings rose due to higher net investment spreads, joint venture earnings, and growth in Brazil, partly offset by the Prudential of Japan sales suspension
- Legacy product run-off - Decline in U.S. Legacy Products segment earnings due to less favorable underwriting and lower net fee income from continued run-off
