Prudential Announces Strong Q2 Results

The individual life segment showed a decrease in operating income, reporting $88 million down from $138 million one year ago. The decrease, according to the company, is a result of net amortization of deferred policy acquisition costs.

The group insurance segment also posted a drop in income, with results of $32 million compared with $105 million a year ago. Several factors contributed to this drop, including less favorable underwriting results, less favorable group disability claims experience, and higher expenses.

Chairman and Chief Executive Officer John Strangfeld expressed confidence in the businesses' overall performance. "Our businesses performed well in the second quarter, and our results for the first half are on track toward our objectives for the year," he said in a press release. "We continue to see benefits from our enhanced competitive position in sales and net asset flows, and we are focused on growing distribution in our U.S. and international markets and building quality business that can provide appropriate returns over market cycles.

"We are positioned to benefit from changes in the landscape that favor strong companies with solid value propositions, and I have never been more confident in our long-term prospects," he added.

The International Insurance and Investments division reported adjusted operating income of $478 million for the second quarter, up slightly from $476 million one year ago. New policy valuation systems and improved results from global commodities drove results for these segments.