(Reuters) – Insurer Prudential Financial reported a rise in second-quarter adjusted profit on Thursday, as its U.S. unit was boosted by stronger underwriting and higher investment returns.
A resilient U.S. economy and growing hopes for a soft landing have led businesses and individuals to invest more in insurance policies.
The Newark, New Jersey-based company’s U.S. businesses, posted adjusted operating income of $1.07 billion in the reported quarter, compared to $956 million in the year ago quarter.
“We continued to see positive momentum across our businesses, driven by robust sales in our U.S. and International Businesses, as well as strong investment performance,” said CEO Charles Lowrey.
Meanwhile, the industry has experienced broad gains in investment income as higher interest rates have lifted fixed-income portfolios, and equity markets have surged to record highs.
PGIM, Prudential’s global investment management business, reported an adjusted operating income of $206 million in the quarter, up from $179 million a year ago, driven by higher asset management fees.
Assets under management climbed to $1.48 trillion in the second quarter versus $1.41 trillion a year ago.
The insurer has been looking to shift its business model away from market-sensitive segments towards more stable and recurring sources of income such as underwriting.
The company’s after-tax adjusted operating income came in at $1.23 billion, or $3.39 per common share, in the three months ended June 30, compared with $1.14 billion, or $3.09 per share, a year earlier.
(Reporting by Manya Saini in Bengaluru; Editing by Tasim Zahid)
Comments