Pru's U.S. Chief Enters August Storms With Sunny Annuity Numbers
Prudential Financial’s U.S. life and annuity business posted great numbers, right before world investment markets went haywire and stole focus.
Caroline Feeney, the head of Prudential’s U.S. businesses, told securities analysts Friday that Prudential generated strong sales of relatively low-risk products, and that market demand continues to move in Prudential’s direction.
“We do see strengthening tailwinds from rapid growth in the population of Americans over age 65, and as well as increased demand for solutions that protect retirement savings and provide lifetime income,” Feeney said. “So, we believe customer demand for protected income will continue to be the driving force behind growth over the long term.”
What it means: As of last week, the companies backing clients’ life and annuity guarantees sounded happy.
The earnings: Prudential held the conference call to go over earnings for the second quarter with securities analysts.
The Newark, New Jersey-based company reported $1.2 billion in net income for the quarter ended June 30 on $14 billion in revenue, up from $496 million in net income on $13 billion in revenue.
Sales of the FlexGuard Suite registered index-linked annuities increased 79%, to $2.2 billion, and sales of fixed annuities climbed 98%, to $1.2 billion.
