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Prudential Financial's third-quarter profit boosted by US unit growth

Published 11/01/2023, 04:56 PM
Updated 11/01/2023, 05:02 PM
© Reuters. Prudential Financial Inc logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) - Prudential Financial (NYSE:PRU) reported a rise in third-quarter adjusted profit on Wednesday, as the insurer's U.S. unit logged strong growth driven by higher net investment spread and lower expenses.

The insurer has been looking to shift its business model away from market sensitive segments towards more stable and recurring sources of income such as underwriting.

"We continued to execute on our strategy to reduce market sensitivity and increase capital efficiency," said CEO Charles Lowrey.

The company's U.S. businesses reported adjusted operating income of $1.09 billion for the third quarter, compared with $615 million a year earlier.

Prudential reported assets under management of $1.36 trillion in the third quarter, compared with $1.35 trillion a year earlier.

© Reuters. Prudential Financial Inc logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The company's after-tax adjusted operating income was roughly $1.3 billion, or $3.44 per common share, for the three months ended Sept 30, compared with $896 million, or $2.37 per share, a year earlier.

Prudential said it returned $711 million to shareholders in the third quarter, including $250 million in share repurchases and $461 million in dividends.

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