A helpful tax ruling and strong overall growth helped Prudential Financial Inc. double its profits in the third quarter.[@@]
Prudential, Newark, N.J., is reporting $1.3 billion in net income for the latest quarter on $7.8 billion in revenue, up from $548 million in net income on $7.3 billion in revenue for the third quarter of 2004.
A rising stock market helped asset-management fees, and new annuity products helped increase annuity sales, Prudential says.
Meanwhile, the completion of an investigation by the Internal Revenue Service let Prudential release $692 million in reserves that it been set aside to cover an unfavorable outcome.
In other earnings news:
- Nationwide Financial Services Inc., Columbus, Ohio, is reporting $167 million in net income for the third quarter on $1.1 billion in revenue, up from $136 million in net income on $1.1 billion in revenue for the third quarter of 2004.
Sales of retirement plans were strong, but sales of individual life insurance were flat, and sales of fixed and variable annuities through financial institutions were weak, Nationwide says.