Prudential Financial Inc., the largest U.S. life insurer, has reported better-than-expected second-quarter results and raised its full-year earnings guidance amid strong variable annuity sales and solid growth in its Japanese businesses.
Variable annuity sales came in at $1.78 billion for the second quarter, the Newark, N.J., insurer said late Wednesday, up 16% from the year earlier. Operating income was $570 million, or $1.13 per share, up 15%, the company said.
Per-share earnings beat by a nickel the average estimate of 15 analysts surveyed by Thomson First Call.
Prudential said it now expects full-year adjusted operating earnings to fall between $4.50 and $4.60 per share, up from its previous guidance of $4.20 to $4.40 a share.
The international insurance unit produced operating income of $327 million in the quarter, up 34%. International insurance sales advanced 14%, to $1.6 billion, and sales by Prudential's Japanese businesses rose 34%, to $678 million, excluding the company's Gibraltar Life subsidiary.
