(Bloomberg) — Prudential Financial Inc., the second- largest U.S. life insurer, posted a first-quarter profit after deals helped fuel growth in the U.S.
Net income of $1.24 billion compares with a $720 million loss a year earlier, Newark, New Jersey-based Prudential said today in a statement. Operating profit, which excludes some investments and results of policies sold before the company went public, was $2.40 a share, beating the $2.25 average estimate of 17 analysts surveyed by Bloomberg.
Chief Executive Officer John Strangfeld, 60, has used pension deals and corporate acquisitions in the U.S. and overseas to add to profits. Prudential purchased a life insurer from Hartford Financial Services Group Inc. last year, after adding Japanese units from American International Group Inc. in 2011.
"We are continuing to build our base of high quality business, and the integration of the individual life business we acquired from The Hartford remains well on track," Strangfeld said in the statement.
The U.S. retirement solutions and investment management business posted operating profit of $945 million, up from $769 million a year earlier. Earnings climbed 60 percent to $364 million at theretirement segment, fueled by investments.
The individual annuities segment contributed $388 million, up from $372 million. Higher account values contributed to a 14 percent increase in earnings at the asset-management business to $193 million, Prudential said.
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