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Individual annuities charge weighs on Prudential's Q1 results

's after-taxadjusted operating income declined year over year in the first quarter as one-timeitems clouded individual annuities results.

The lifeinsurer posted after-tax adjusted operating income of $997 million, or $2.18 pershare, compared to $1.30 billion, or $2.79 per share, a year earlier.

The S&PCapital IQ consensus normalized EPS estimate was $2.36.

The mostrecent quarter's results included a $53 million pretax charge in individual annuities.This reflected the impact of market performance on deferred policy acquisition andother costs and reserves for guaranteed death and income benefits. The unfavorableeffect on EPS was about 8 cents.

In thefirst quarter of 2015, adjusted operating income included a net benefit to individualannuities results of about 14 cents per share. That benefit was related to an updatedestimate of profitability reflecting market performance and a charge for integrationcosts in individual life for business acquired from The Hartford Financial Services Group Inc.

Net incomewas $1.34 billion, or $2.93 per share, in the first quarter, compared to $2.04 billion,or $4.37 per share, in the same quarter of 2015.