US Individual Life and Group Insurance division
Prudential Financial’s (PRU) operating income for its US Individual Life and Group Insurance fell to $201 million in 2Q16, compared to $312 million in 2Q15. The fall was mainly due to losses in the US Individual Life segment.
Individual Life segment
Prudential’s Individual Life segment reported a fall of $290 million in 2Q16 on an adjusted operating income basis, compared to adjusted operating income of $237 million in the previous year’s quarter. This was mainly due to a net charge of $420 million from updates of reserves and related items, including updated profitability estimates reflecting updates of actuarial assumptions based on an annual review.
Excluding reserves and refinements, Individual Life results fell by $47 million from the previous year’s quarter, primarily due to fewer favorable claims experiences.
Group Insurance segment
Prudential is targeting improved margins for its disability underwriting. The Group Insurance segment’s adjusted operating income rose to $89 million in 2Q16 compared to $75 million in the prior year’s quarter.
The rise was mainly due to a net benefit of $41 million from refinements of reserves and related items in the prior year’s quarter.
Prudential Financial’s book value per share rose by ~2.5% in the quarter ended March 31, 2016, compared to the previous quarter. Meanwhile, book value per share rose by ~6% for both Metlife (MET) and Allstate (ALL) and by ~8% for Chubb (CB) during the same period.
Prudential Financial competes with other players in the insurance business that are part of the iShares MSCI ACWI ETF (ACWI).
Prudential Financial had a balance sheet capital capacity of $797 billion as of June 30, 2016. Its parent company's cash and equivalents stood at $4 billion.
In the last month the CSI 300 is down 11.5%, much more than US indices.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.