Yahoo Finance Prudential Financial Expands US Individual Life Division in 2Q15
Prudential Financial Reports Strong Earnings on Life and Retirement
US Individual Life and Group Insurance division
In 2Q15, Prudential Life’s (PRU) US Individual Life and Group Insurance division reported strong growth in its adjusted operating income of $312 million, compared with $204 million in 2Q14. The division forms 17% of the company’s total adjusted operating income.
Individual Life segment
Prudential’s Individual Life segment expanded its operations and reported adjusted operating income of $237 million for 2Q15, compared with $158 million in 2Q14. The company incorporated updates related to actuarial assumptions, resulting in a net benefit of $68 million. This growth appeared across the product categories, including term, universal, and variable life.
Prudential achieved this growth while meeting its returns and its product diversification targets. In 2Q15, Prudential Financial successfully completed the integration of the Hartford Life acquisition, resulting in synergies for the segment.
Group Insurance segment
The Group Insurance segment’s revenues increased with its adjusted operating income of $75 million. This growth was impacted by updates of actuarial assumptions, resulting in a net benefit of $28 million. The segment also benefited from pricing and underwriting actions in the disability block.
Prudential Financial’s book value per share grew at ~10% during the past year. Compared to this, the per-share book value growth was ~6% for ACE (ACE) and Allstate (ALL), and it was ~8% for Chubb (CB) during this period.
Prudential Financial also competes with other players in the insurance business, which form 22.7% of the Financial Select Sector SPDR ETF (XLF).
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