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▼ Prudential Profit Rises Even As Firm Grapples With Japan Pause
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Prudential Financial’s first-quarter profit beat Wall Street’s expectations, relieving pressure on Chief Executive Officer Andy Sullivan as he contends with a sales pause in one of its biggest markets.
The insurer posted operating earnings per share of $3.61 in the first quarter, according to a statement Tuesday.
That’s up 9.7% from a year earlier and above the $3.09 average estimate of analysts, according to compiled data. Net investment income grew 11% to about $5 billion in the quarter.
Sullivan took over as CEO last year with the goal of hitting financial targets after misses in recent years. After less than a year in the role, he had to respond to a regulatory probe involving its Japan unit.
Earlier this year, Prudential voluntarily paused life insurance sales in the country for three months to restore trust after the investigation showed employee misconduct cost clients an estimated $20 million.
Since then, the firm has extended the sales pause to Nov. 5. Forced to walk back its objective to grow earnings per share by as much as 8% by 2027, the insurer now expects the sales halt to hit its earnings by as much as $575 million this year and $450 million in 2027.
The sales extension prompted Fitch Ratings to place Prudential on rating watch negative Monday.
Prudential’s stock declined 11% this year as of market close Tuesday.
The insurer posted operating earnings per share of $3.61 in the first quarter, according to a statement Tuesday.
That’s up 9.7% from a year earlier and above the $3.09 average estimate of analysts, according to compiled data. Net investment income grew 11% to about $5 billion in the quarter.
Sullivan took over as CEO last year with the goal of hitting financial targets after misses in recent years. After less than a year in the role, he had to respond to a regulatory probe involving its Japan unit.
Earlier this year, Prudential voluntarily paused life insurance sales in the country for three months to restore trust after the investigation showed employee misconduct cost clients an estimated $20 million.
Since then, the firm has extended the sales pause to Nov. 5. Forced to walk back its objective to grow earnings per share by as much as 8% by 2027, the insurer now expects the sales halt to hit its earnings by as much as $575 million this year and $450 million in 2027.
The sales extension prompted Fitch Ratings to place Prudential on rating watch negative Monday.
Prudential’s stock declined 11% this year as of market close Tuesday.
- 6/5 19:18
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