Rise in annuities earnings
The individual annuities business of Prudential Financial (PRU) saw an increase in its earnings in 2Q17 compared to 2Q16. After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16. This rise resulted mainly from fee income, policy charges, and net investment results.
In 2Q17, Prudential Financial’s individual annuity sales declined on a YoY (year-over-year) basis. In 2Q17, its individual annuity sales stood at $1.5 billion compared to $2.3 billion in 2Q16. However, individual annuity sales in 2Q17 rise marginally compared to sales in 1Q17. Individual annuity sales in 1Q17 stood at $1.4 billion.
Earnings from Prudential Financial’s (PRU) retirement business rose in 2Q17 compared to 2Q16. In 2Q17, retirement earnings totaled $328 million and in 2Q16, they totaled to $230 million, reflecting an increase of $98 million. This rise in retirement earnings was mostly due to favorable net investment results.
In 2Q17, total gross sales and deposits under Prudential Financial’s retirement business stood at $7.3 billion compared to $8.1 billion in 2Q16. This YoY decline resulted from lower sales in institutional investment products in 2Q17.