Prudential Financial Missed 1Q Adjusted Profit Expectations

   By Micah Maidenberg

Prudential Financial Inc. said Tuesday it lost $271 million, or 70 cents a share, for the first quarter, as the insurance and financial services company reported lower investment spreads amid market turmoil tied to the new coronavirus.

The company reported an adjusted profit of $2.32 a share, down from $3 a share in the first quarter last year. Analysts expected $2.78 a share on that metric for the latest period, according to FactSet.

Weaker investment spreads, or the difference between the amount the company must pay out and the rate of return it earns on certain investments, hurt results in some units, Prudential said in a statement.

The company reported lower investment spreads across its U.S. business unit as well as lower net fee income. International businesses also saw lower net investment spreads.

And PGIM, its global investment management business, reported adjusted operating income of $164 million for the first quarter, down from $214 million in the first quarter last year. Lower strategic investment earnings weighed on PGIM, the company said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

May 05, 2020 17:01 ET (21:01 GMT)

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