Prudential Financial, Inc. (NYSE:PRU)  Announces 2015 Results

  • After-tax adjusted operating income for 2015 of $4.649 billion, or $10.04 per Common share, compared to $9.21 per Common share for 2014.1
  • Fourth quarter 2015 after-tax adjusted operating income of $891 million, or $1.94 per Common share, compared to $2.12 per Common share for the year-ago quarter.1
  • Significant items included in current quarter adjusted operating income:

- Pre-tax net benefit of $7 million in Individual Annuities, to reflect the impact of market performance on reserves for guaranteed death and income benefits and deferred policy acquisition and other costs.

- Pre-tax charge of $20 million in Individual Life from reserve refinements related to a valuation system conversion.

- Pre-tax charge of $80 million in Corporate and Other operations for estimated remediation costs related to the administration of certain separate account investments.

The items above had a net unfavorable impact of approximately 13 cents per Common share on current quarter results.

  • Several of our businesses, and our Corporate and Other operations, incur costs in the fourth quarter that exceed the average quarterly level for the year, reflecting the timing of expenses for items such as technology and business development, annual policyholder communications and onboarding, advertising and other variable costs. For the current quarter, we estimate the pre-tax impact to be approximately $175 million including about $50 million in our U.S. businesses, about $50 million in our international businesses, and the remainder in our Corporate and Other operations.

For the year-ago quarter, refinements of reserves in several businesses, a net charge to Individual Annuities results from updated estimates of profitability reflecting market performance, and integration costs in Individual Life for the acquired Hartford business resulted in a net negative impact of approximately 21 cents per Common share to adjusted operating income.