NEW YORK—Life insurer and annuity provider Prudential Financial Inc. on Wednesday said its third-quarter profit shot up 29 percent, but adjusted earnings fell because of a series of charges, mainly used to bolster reserves.
The Newark, N.J.-based company said net income in its financial-services business rose to $1.51 billion, or $3.06 per share, from 1.17 billion, or $2.46 per share in the same period last year.
Adjusted earnings came to $1.07 per share as it booked about $569 million in net charges, mainly related to adjustments made in reserves after actuarial reviews.
Revenue rose 27 percent to $9.95 billion, from $7.88 billion last year.
Analysts, on average, were expecting adjusted profit of $1.53 per share, on revenue of $10 billion.
"While our third quarter results reflect the turbulent financial markets, underlying performance of our businesses was solid," said Chairman and CEO John Strangfeld in a statement.
Prudential said premium revenue, investment income and asset management fees all rose. Assets under management rose 16 percent to $871 billion, from $750 billion a year ago.
The company reported net realized investment gains of $1.62 billion, versus $284 million a year ago.
Prudential's "closed block" book of business -- life insurance and annuity policies issued before the company went public in December 2001 but still in force -- reported net income of $29 million for the quarter, down from $77 million a year ago. The Class B shares that reflect performance of the closed block business do not trade.
Consolidated quarterly net income, which includes results from its financial services businesses and the closed block business, totaled $1.53 billion, up 23 percent from $1.24 billion a year ago.
In aftermarket electronic trading, Prudential shares slid $1.17, or 2 percent, to $52.50 from their Wednesday close in the regular session at $53.67.
