Prudential Financial Inc (NYSE:PRU) stock rose 1.35% (As on February 8, 11:03:00 AM UTC-4, Source: Google Finance) after the company reported a roughly 26% fall in fourth-quarter adjusted profit as a global market rout pressured the insurer’s assets under management (AUM). The previous year was marked by heavy losses in the capital markets amid uncertainty triggered by the war in Ukraine, decades-high inflation and fears of an imminent recession. The company reported a 21% decline in AUM in the quarter to $1.38 trillion. Net loss attributable to Prudential Financial, Inc. was $558 million ($1.53 per Common share) for the fourth quarter of 2022, compared to net income of $1.208 billion ($3.13 per Common share) for the fourth quarter of 2021. After-tax adjusted operating income was $907 million for the fourth quarter of 2022, compared to $1.227 billion for the fourth quarter of 2021.
PRU in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.42, missing the analysts’ estimates for the adjusted earnings per share of $2.51. The company had reported the adjusted revenue of $12.65 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $13.57 billion.
Moreover, PGIM, the Company’s global investment management business, reported adjusted operating income of $230 million for the fourth quarter of 2022, compared to $350 million in the year-ago quarter. This decrease primarily reflects lower asset management fees, driven by a reduction in assets under management, and lower Other Related Revenues, driven by lower incentive fees, agency income, and transaction fees, partially offset by lower expenses. U.S. Businesses reported adjusted operating income of $864 million for the fourth quarter of 2022, compared to $895 million in the year-ago quarter. This decrease primarily reflects lower net investment spread results, driven by lower variable investment income, and lower net fee income, partially offset by more favorable underwriting results. Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $802 million for the fourth quarter of 2022, compared to $1.029 billion in the year-ago quarter.
The board approved a 4% year-over-year increase in quarterly dividend to $1.25 per common share, payable on March 16 to shareholders of record on Feb. 21.
The board also authorized the repurchase of up to $1 billion in common shares through Dec. 31.