OREANDA-NEWS.  February 07, 2014. Pre-tax adjusted operating income up USD385 million or 36% from year-ago quarter.
          
Record-high earnings in Prudential Retirement, reflecting contribution to results from two significant pension risk transfer transactions that closed in late 2012.
          
U.S. Individual Life and Group Insurance earnings up USD 128 million, reflecting contribution from in force business acquired from The Hartford in January 2013 and improved group insurance claims experience.
          
Retirement account values reach record-high USD 322.9 billion at year end, for an 11% increase from a year earlier; gross deposits and sales for the quarter of USD 9.9 billion; net additions USD 1.4 billion, reflecting positive net flows in Institutional Investment Products and Full Service.
          
Asset Management institutional and retail net flows, excluding money market, total USD 6.8 billion, marking the 20th consecutive quarter of positive net flows; segment assets under management USD 869.9 billion at year end, up 5% from a year earlier.
          
Individual Annuity account values surpass USD 150 billion milestone, reaching USD 154.1 billion at year end, a 14% increase from a year earlier; gross sales for the quarter of USD 2.4 billion, net sales USD 322 million.
          
U.S. Individual Life annualized new business premiums USD 166 million, compared to USD 144 million a year ago.
          
International Insurance constant dollar basis annualized new business premiums from captive distribution of USD 500 million, compared to USD 483 million a year ago; total annualized new business premiums of USD 742 million for current quarter.
          
Significant items included in current quarter adjusted operating income:
          
 Pre-tax net benefit of USD 108 million in Individual Annuities, including release of reserves for guaranteed death and income benefits and reduced amortization of deferred policy acquisition and other costs reflecting market performance.
          
Pre-tax charge of USD 8 million in Individual Life for integration costs relating to the acquisition of The Hartford’s individual life insurance business.
          
Pre-tax charges of USD 101 million in International Insurance, including USD 78 million in Life Planner operations and USD 23 million in the Gibraltar Life operation, for reserve refinements and related items.
          
Pre-tax charge of USD 11 million in International Insurance’s Gibraltar Life operation for integration costs relating to the acquisition of AIG Star Life Insurance Co., Ltd. and AIG Edison Life Insurance Company.
    
During the year-ago quarter, several of our U.S. businesses incurred costs for items such as business process improvements, fund start-up costs, and reserves for costs associated with certain client contracts, which were estimated to be in excess of a baseline level relative to business volume. These items had an estimated negative impact of approximately USD \\$100 million on fourth quarter 2012 pre-tax adjusted operating income including USD 17 million in the Individual Annuities segment, USD 16 million in the Retirement segment, USD 49 million in the Asset Management segment, and USD 18 million in the Group Insurance segment. In addition, an update of the effective tax rate applicable to adjusted operating income in the fourth quarter of 2012 based on full year results contributed approximately 7 cents per Common share to year-ago quarter results.
          
Net loss of Financial Services Businesses attributable to Prudential Financial, Inc. for year 2013 of USD 713 million, or USD 1.55 per Common share.
          
Fourth quarter 2013 net loss of Financial Services Businesses attributable to Prudential Financial, Inc. of USD \\$427 million, or 94 cents per Common share.
          
The current quarter net loss includes pre-tax losses of USD 1.2 billion from net changes in value relating to foreign currency exchange rates primarily resulting from changes in value of the Japanese yen in relation to other currencies. These currency-driven value changes were largely offset by corresponding adjustments to accumulated other comprehensive income which are not reflected in net income or loss.