Reuters: Global Markets: Prudential shares fall on earnings miss

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Prudential shares fall on earnings miss May 3rd 2012, 17:28 Thu May 3, 2012 1:28pm EDT (Reuters) - Prudential Financial Inc (PRU.N) CEO John Strangfeld pledged to fix the company's group insurance business as the insurer's shares fell more than 10 percent on Thursday after first-quarter results missed analyst estimates. In an earnings report on Wednesday, the second-largest life insurer in the United States said its group insurance segment posted a loss of $38 million in the quarter, on an adjusted operating income basis, compared to a gain of $39 million a year ago. The business provides life, disability and long-term care insurance for employee and membership benefits plans. In April, Prudential named company veteran Steve Pelletier to take over the business, replacing Lori High, who resigned. "Under Steve, we will be comprehensively reviewing all facets of group insurance and will make all needed changes," Strangfeld said in a conference call with analysts on Thursday. Prudential reported a loss of $988 million, or $2.09 per share, compared with a year-earlier profit of $539 million, or $1.10 per share. Results were dampened by charges for value changes in derivatives tied to the weakening of the Japanese yen, the company said. On an operating basis, the company earned $1.56. Analysts polled by Thomson Reuters I/B/E/S expected earnings of $1.71 per share. With the exception of group insurance, the underlying performance of the company's other businesses was favorable, Strangfeld said. The company's 2013 return on equity goal of 13 to 14 percent remains "achievable," he said. (Reporting By Rick Rothacker; Editing by Bernard Orr) Link this Share this Digg this Email Reprints

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