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Prudential Financial after-tax adjusted operating income climbs YOY

Prudential Financial Inc. has reported second-quarter after-tax adjusted operating income of $919 million, or $2.09 per share, up from $829 million, or $1.84 per share, in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $2.71.

Net income attributable to the company declined to $491 million, or $1.12 per share, in the second quarter, from $921 million, or $2.04 per share, in the second quarter of 2016.

The company completed its annual review and update of actuarial assumptions during the quarter, resulting in a pretax charge to net income from updates of reserves and related items and adjustments to amortization of deferred policy acquisition and related costs of $492 million for ongoing businesses. This represents a pretax charge to adjusted operating income of $622 million, partly offset by a pretax benefit of $130 million to net realized investment losses and related charges and adjustments.

The net income and adjusted operating income figures for the most recent quarter each include a pretax benefit of $54 million in individual annuities to reflect the impact of market performance on deferred policy acquisition and other costs and reserves for guaranteed minimum benefits, with a favorable impact of 8 cents per share.

Prudential Financial's U.S. retirement solutions and investment management division saw $1.14 billion of adjusted operating income, up from $870 million in the year-ago period. The U.S. individual life and group insurance division reported a loss on an adjusted operating income basis of $421 million, compared with $201 million in the second quarter of 2016. The international insurance segment had adjusted operating income of $823 million, up from $803 million in the prior-year period.

The corporate and other operations segment saw a loss of $312 million on an adjusted operating income basis, compared with a loss of $415 million in the second quarter of 2016.

Assets under management and administration totaled $1.522 trillion at the end of the second quarter, up from $1.439 trillion as of June 30, 2016.

Adjusted book value per common share was $80.62 as of June 30, up year over year from $76.55.