Prudential Financial Inc. posted a surprise jump in profit and said it’s ahead of schedule on an effort to cut expenses.
- The life insurer’s net income rose to $1.49 billion in the third quarter, compared with profit of $1.42 billion a year earlier. The company said it had already achieved more than 95% of the cost cuts it planned for 2020.
- Chief Executive Officer Charles Lowrey has been looking for ways to battle low interest rates, which have weighed on results. “We continued to reprice products and pivot to less rate-sensitive products,” Lowrey said in a statement Tuesday.
- The company’s asset-management unit PGIM, which has been a bright spot, posted record adjusted profit as clients assets jumped 11% from a year earlier to the highest ever.
- Prudential said it now aims to cut $250 million more in expenses by the end of 2023, bringing the total to $750 million.
- Shares rose 1.1% to $68.50 at 4:34 p.m. in late trading in New York. They’re down 28% this year through Tuesday’s close.
- Earnings per share beat forecasts. After-tax adjusted operating income was $3.21 a share, surpassing the $2.71 median estimate of 11 analysts.
- Prudential’s statement ishere. Its presentation ishere.
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